Cable bounces in early Monday’s trading after strong fall in past three days were contained by 200SMA/bull-channel support line and stalled just ahead thick rising daily cloud top.
Friday’s long-legged Doji signaled indecision ahead of key supports and subsequent consolidative/corrective action.
Oversold daily slow stochastic and north-turned momentum support the notion.
Fresh recovery struggles at initial barrier at 1.3074 (55SMA), with extended upticks to face strong resistances at 1.3130/60 zone (Fibo 38.2% of 1.3381/1.2977/converged 10/20/30SMA’s).
Limited recovery could be anticipated as overall sentiment soured further after third rejection of PM May’s plan and rising concerns about no-deal divorce on current due date on 12 April, as the EU is losing patience.
However, Brexit saga continues and further surprises cannot be ruled out as UK parliament votes on indicative proposals today, with focus on a second referendum and customs union and Sterling is expected to remain volatile this week.
Res: 1.3084, 1.3131, 1.3146, 1.3163
Sup: 1.3009, 1.2977, 1.2960, 1.2923
