Cable holds in red on Thursday and seeing risk of deeper pullback after near-term bulls repeatedly failed to clear falling 20SMA (also Fibo 38.2% of 1.3362/1.2661 descend) and Wednesday’s action ended in Doji. Reversal pattern is forming on daily chart, with daily close below 1.2831 (Fibo 38.2% of 1.2661/1.2936 upleg) needed to confirm the pattern and signal further weakness. South-turning 14-momentum and slow stochastic attempting to reverse from overbought zone, support the notion, along with fresh strength of the greenback after Fed minutes and persisting Brexit concerns. Return below bear-channel support line, reinforced by 10SMA (1.2788) is needed to neutralize hopes of fresh upside action and shift focus towards key support at 1.2661 (15 Aug low, the lowest since June 2017).
Res: 1.2898, 1.2936, 1.2976, 1.3000
Sup: 1.2855, 1.2831, 1.2800, 1.2788
