Cable trades in directionless mode in European session on Friday and holding between 20DMA (1.2152) and 10DMA (1.2203), which mark initial support/resistance levels.
Near-term bias remains with bears, following this week’s double upside rejection under key trendline resistance and subsequent sharp fall, triggered by the latest action of Britain’s PM Johnson, who suspended the parliament in attempts to speed up divorce process, regardless to scenarios and consequences, as 31Oct deadline nears.
Deepening pessimism on fears of consequences on no-deal Brexit was boosted by weak UK business and consumer confidence data that add to negative outlook.
The pair is on track for bearish weekly close, but monthly candle is shaped in long-legged Doji and signals indecision as bears approach key 1.20 support zone.
Daily studies are bearishly aligned, while weeklies are in full bearish setup that warns of further weakness and possible attack at post-Brexit vote lows at 1.20 zone, violation of which would spark significant bearish acceleration.
Converged 10/30DMA’s (1.2203) are expected to ideally cap, but bears will remain in play as long as upticks hold below bear-trendline (1.2261).
Res: 1.2191; 1.2203; 1.2240; 1.2261
Sup: 1.2152; 1.2127; 1.2108; 1.2064
