Cable stands at the back foot in early Wednesday’s trading and pressures again pivotal 20DMA support (1.3648) which holds the action since late December.
Near-term bias remains negative following fresh weakness after multiple failures to clearly break 1.37 zone, although Tuesday’s action ended in long-legged Doji and signaling indecision. Daily studies point to downside risk as 14-d momentum broke into negative territory and stochastic is heading south.
Better than expected UK Services/Composite PMI figures for January so far did not provide any positive impact to sterling, keeping near-term focus shifted to the downside. Close below 20DMA is needed to generate negative signal and open way for further easing through Tuesday’s low/30DMA (1.3611) that would bring in focus pivotal supports at 1.3500 zone (Fibo 23.6% of 1.2675/1.3758/55DMA).
Res: 1.3689, 1.3710, 1.3758, 1.3768
Sup: 1.3611, 1.3573, 1.3519, 1.3502