Cable edges higher after double downside rejection at 1.2208, where a higher base is forming on 4-hr chart.
Fresh upside is supported by double-bull-cross (5/20 and 10/20) as well as strong bullish momentum on daily chart, but will face again strong barriers at 1.2291 (trendline resistance) and 1.2308 (Fibo 38.2% of 1.2783/1.2015).
Daily stochastic is turning south and about to emerge from overbought territory that adds to possibilities of repeated upside rejection.
Larger bear-trend is expected to remain intact while bear-trendline off early May high at 1.3179 caps recovery attempts, while overall sentiment remains negative on persisting fears of hard Brexit.
Bullish scenario requires clear break above 1.2300 resistance zone that would open way towards round-figure resistance at .2400, reinforced by falling 30DMA and 50% retracement of 1.2783/1.2015.
Repeated rejection under bear-trendline is expected to keep the downside vulnerable, with close below 1.2187 (Fibo 38.2% of 1.2015/1.2293 upleg) to generate initial reversal signal and expose pivotal supports at 1.2169 (10DMA) and 1.2144 (20DMA).
Res: 1.2293, 1.2311, 1.2328, 1.2382
Sup: 1.2208, 1.2187, 1.2169, 1.2144
