Cable trades within narrow range on Monday, holding between 10SMA (1.3260) and 5SMA (1.3215) after recovery action was capped by 20SMA on Friday (1.3308) and subsequent pullback marked strong rejection here.
Risk aversion on escalation of trade conflict between US and China weighs on cable, along with deepening row between UK government and business leaders over Brexit.
Near-term risk remains skewed lower as daily techs are overall bearish and see risk of retesting key supports at 1.3101 (21 June low) and 1.3073 (weekly 100SMA).
Close below 5SMA pivot is needed to confirm bearish scenario, while lift and close above 20SMA would sideline bearish threats and open way for extension of recovery leg from 1.3101. Break above 1.3330 (Fibo 61.8% of 1.3472/1.3101) is needed to confirm reversal.
Res: 1.3261, 1.3305, 1.3330, 1.3343
Sup: 1.3218, 1.3146, 1.3101, 1.3073
