Cable pulls back from new one-week high (1.2542) and dips below 1.2500 in early European trading on Wednesday as bulls faced headwinds from strong resistance zone at 1.2517/42 (10 DMA / Fibo 38.2% of 1.283/1.2335 / 20DMA).
The pair was boosted by risk appetite in past two days, but daily technical studies in mixed mode do not fully support recovery, as MA’s are conflicting and negative momentum is rising.
Fresh weakness increase risk of recovery stall and re-expose key support at 1.2434 (converged 30/55 DMA’s) violation of which would confirm upside rejection.
On the other side, close above 20DMA (1.2542) would signal bullish continuation.
Res: 1.2517, 1.2542, 1.2574, 1.2600
Sup: 1.2476, 1.2448, 1.2434, 1.2400
