Cable was lifted by risk mode in Asia and hit session high at 1.2687, where 200DMA capped the advance.
Bulls lost traction after UK labor data showed fall in payrolls and average earnings in May, keeping limited the bounce that emerged after double-rejection above daily cloud.
Daily studies show rising bullish momentum and stochastic, with Monday’s bullish outside day adding to positive signals, however, bulls face headwinds as thick weekly cloud weighs (cloud base lays at 1.2736).
Recovery needs firm break of 200DMA to open way for test of weekly cloud base, violation which would unmask key barrier at 1.2813 (10 June high).
Current easing needs to find ground above 1.2600 mark to keep bulls alive for renewed attack at 200DMA, while break lower would weaken near-term tone and expose pivotal support at 1.2530 (100DMA).
Res: 1.2681, 1.2736, 1.2753, 1.2813
Sup: 1.2592, 1.2572, 1.2530, 1.2475
