Cable remains directionless in early Thursday’s trading after Tuesday’s turbulent action on parliament’s rejection of Brexit plan and no significant reaction on Wednesday’s no-confidence vote which PM May’s government survived.
The action remains capped by sideways-moving 100SMA (1.2893) for the fourth straight day, which provides initial signal of stall, despite break above falling daily cloud.
Weakening bullish momentum on daily chart warns, but flat RSI and slow stochastic maintain neutral mode for now.
Also, bulls are losing traction on weekly chart as falling 30WMA caps, momentum is neutral and slow stochastic in overbought, keeping weekly action so far shaped in long-legged Doji candle.
The pair looks for a catalyst to emerge from current range and generate fresh direction signal.
The floor of congestion at 1.2820 zone marks initial support, loss of which would signal deeper pullback and expose key support at 1.2746 (daily cloud base).
Close below cloud would generate stronger reversal signal.
At the upside, sustained break above 100SMA / 30WMA barriers is needed to generate bullish signal for continuation of recovery.
Res: 1.2893, 1.2930, 1.3000, 1.3108
Sup: 1.2820, 1.2804, 1.2780, 1.2746
