Strong supports at 1.1950/26 zone continue to provide headwinds
Cable edges higher in early European trading on Monday after repeatedly facing headwinds from strong technical supports at 1.1950/26 zone (Fibo 38.2% retracement of 1.1146/1.2447 upleg / 200DMA / daily cloud base and 100/200DMA bull-cross).
Prevailing bearish tone on daily and weekly charts keeps the downside vulnerable, though oversold conditions may keep near-term action in prolonged consolidation within 1.1915/1.2147 range.
Broken psychological 1.20 level offers solid resistance (the pair did not register firmer break and close below this level since (Jan 5), followed by descending daily Tenkan-sen (1.2048), as near-term action is weighed by falling weekly cloud, which continues to cap near-term action.
Upticks should offer better selling opportunities while holding below range top (reinforced by weekly cloud base / Tenkan-sen).
Caution on break higher which would sideline near-term bears and shift focus towards key near-term barriers at 1.2447 (Dec 14 / Jan 23 tops).
Res: 1.2000; 1.2048; 1.2087; 1.2147
Sup: 1.1926; 1.1900; 1.1841; 1.1796