Cable is bid in early Wednesday’s trading and sidelined the downside risk after Tuesday’s close in red which formed bearish outside day pattern.
Advance on fresh risk appetite re-tested falling 55SMA (1.2779) which capped the action in past two days but was so far unable to break higher.
Modest bullish bias on rising momentum and bullish setup of daily 10/20/30 SMA’s could be diminished by overbought slow stochastic, with repeated close below 55SMA to keep the downside vulnerable.
Brexit plan vote next week remains the key event and fears that the plan would not pass the parliament, could keep the upside attempts limited.
Rising 10SMA offers initial support at 1.2791, while extension and close below 20SMA (1.2654) would generate stronger bearish signal.
Res: 1.2779, 1.2796, 1.2814, 1.2850
Sup: 1.2709, 1.2691, 1.2654, 1.2615
