Cable is in near-term recovery from last week’s low at 1.2635, where pound fell after disappointing results of UK election.
Limited corrective action is expected, with daily cloud/55SMA offering strong barrier at 1.2776, which should ideally cap.
Friday’s long red daily candle weighs heavily for renewed downside attempts towards targets at 1.2619 (100SMA), 1.2573 (200SMA) and 1.2548 (daily cloud base).
Daily Tenkan-sen (1.2806) and Kijun-sen (1.2841) are in bearish setup and maintain pressure.
Alternative scenario requires close above Kijun-sen to sideline downside risk and signal further retracement of last Friday’s 1.2955/1.2635 fall.
Res: 1.2776, 1.2806, 1.2841, 1.2883
Sup: 1.2708, 1.2635, 1.2619, 1.2573
