Cable remains constructive on Tuesday and looks for repeated attack at converged 5/100SMA’s (1.3147), which capped Monday’s recovery attempts.
Immediate risk after Friday’s sharp fall has been repeatedly contained by top of thick daily cloud, is on hold for now, however, persisting negative sentiment after a series of Brexit-negative news, keeps the downside vulnerable.
Mixed daily techs do not provide clear direction signal, with bearish scenario to be sparked on close below pivotal 1.3054 support (daily cloud top / Fibo 38.2% of 1.2661/1.3297 rally), while stronger bullish signal could be expected on close above 100SMA.
FOMC decision on Wednesday is likely going to provide clearer direction signal.
Res: 1.3147, 1.3166, 1.3214, 1.3276
Sup: 1.3094, 1.3054, 1.3038, 1.3000
