Risk of recovery stall under key barriers rises
Cable stands at the back foot on Monday and eases from new recovery high at 1.2293, posted after strong bullish acceleration last Thu/Fri.
Bulls face strong headwinds from key barriers at 1.2308/11 (Fibo 38.2% of 1.2783/1.2015 / bear-trendline off 6 May 1.3179 high) and may generate an initial signal of stall on return and close below 30DMA (1.2238) as daily stochastic is overbought and momentum turns south.
Overall picture is bearish and elevated fears of hard Brexit continue to influence pound’s performance and keep in play risk of top formation and fresh weakness.
Res: 1.2293; 1.2311; 1.2328; 1.2382
Sup: 1.2212; 1.2194; 1.2152; 1.2140