Cable stands at the back foot on Tuesday and eases to 1.3050 (10SMA) after strong rally of Thu/Fri briefly extended on Monday to 1.3132 but failed to clearly break above converging 20/100SMA’s (1.3090/1.3102).
Fresh easing shifts near-term focus lower and threatening test of key support at 1.3012 (daily cloud base).
Break below cloud top would be strong negative signal and would risk bearish acceleration towards next key supports at 1.2921 (03/04 Oct double-bottom/daily cloud base). Bearish momentum on daily chart and slow stochastic stalling on approach to overbought territory support scenario.
Hopes of fresh recovery attempts would stay alive while daily cloud top holds, but limited upside could be expected while 20/100SMA’s cap.
Only sustained break higher would neutralize downside risk and signal further recovery.
Res: 1.3090, 1.3102, 1.3132, 1.3154
Sup: 1.3050, 1.3041, 1.3012, 1.2984
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