Cable dipped to new session low at 1.2691 and reversed overnight’s recovery to 1.2755 after gap-lower opening on Monday and dip to Asian low at 1.2702. UK Q3 GDP data showed that the economy slowed down in three months to October that pushed sterling lower at the beginning of historic week, as the UK parliament is going to vote on Brexit deal. Near-term action remains biased lower as daily techs maintain bearish tone and recovery attempts were repeatedly capped by falling 10SMA. Repeated probes below 1.2695 pivot (30 Oct low) also cracked key support at 1.2661 (2018 low) last week, but without clear break so far. Negative scenario on close below 1.2661 would risk stronger bearish acceleration and could be triggered if the House of Commons votes down the deal. Initial bullish signal could be expected on close above 10SMA that would expose falling 20SMA (1.2800) but confirmation would requires break and close above 30SMA (1.2853).
Res: 1.2750, 1.2800, 1.2839, 1.2853
Sup: 1.2691, 1.2671, 1.2658, 1.2600
