Cable stands at the back foot in early European trading on Tuesday and probes again through 1.2819 Fibo support (23.6% of 1.2195/1.3012) which contained attacks in past three days and kept near-term bias with bulls.
Studies on daily chart remain in bullish setup and supportive, but violation of 1.2819 would sideline hopes for fresh attempt at 1.30 zone and signal deeper pullback.
Loss of 1.2819 handle would risk test of pivotal supports at 1.2713/00 (200DMA/Fibo 38.2% of 1.2195/1.3012), break of which would sideline bulls. Repeated close above 1.2819 would signal a higher base formation which would require lift and close above 10DMA (1.2880) for initial confirmation signal.
Brexit drama continues and markets now turn focus towards PM Johnson’s fresh attempt to pass his request for 12 Dec election after the parliament rejected his demand yesterday.
After the EU granted the third Brexit extension until 31 Jan but Britain remains strongly divided politically paralyzed on Brexit story, which so far shows no signs of progress and threatening of deeper crisis.
Res: 1.2860, 1.2880, 1.2950, 1.3000
Sup: 1.2819, 1.2788, 1.2749, 1.2713
