Cable dipped on Monday on fresh risk aversion and tested again key 1.3470 support zone (Fibo 38.2% of 1.3140/1.3675, reinforced by rising 55DMA and bull-trendline off 1.3140 low) where several attacks have been recently rejected.
Eventual break of this temporary higher base would generate fresh bearish signal (bearish continuation of descend from Aug 21 top at 1.3675).
Daily studies maintain strong negative momentum, with multiple MA bear-crosses, contributing to bearishly aligned fundamental outlook (dollar enjoys support from strong Fed rate hike expectations and its safe haven appeal on higher oil prices, sharp fall of AI-related stocks, while Bank of England’s MPC meets this week and is widely expected to keep rates unchanged).
Firm break of 1.3470 would expose converged 200/100DMAs (1.3450/40 respectively) and top of rising daily Ichimoku cloud / 50% retracement of 1.3140/1.3675 rally (1.3410/07).
On the other hand, another failure at 1.3470 zone would keep the price within extended near-term range, but bearishly aligned, while the action stays below falling 10DMA (1.3516).
Res: 1.3500; 1.3515; 1.3550; 1.3600
Sup: 1.3463; 1.3440; 1.3410; 1.3344
