Cable fell on Thursday and probed below strong 100SMA / daily cloud top supports (1.2861/64) following repeated failure above 1.2900 barrier. Negative tone continues to dominate despite better than expected release of UK Retail Sales, as overall structure is bearish on daily chart.
Repeated attack at daily cloud top which was cracked in past two days but without close in the cloud, could result in firm break this time, as fresh bears eye another strong support at 1.2840 (Tue / Wed lows) to open daily cloud base (1.2818) and generate firm signal of bearish continuation.
Such scenario could result in extension towards weekly Kijun-sen (1.2688) and may expose 1.2588 (21 June low).
We will look for today’s close for further negative signals on close within the cloud. Conversely, prolonged consolidation could be expected if the pair repeatedly closes above daily cloud.
Daily 55SMA marks strong resistance and first upper pivot at 1.2929.
Res: 1.2908; 1.2929; 1.2950; 1.2965
Sup: 1.2840; 1.2811; 1.2749; 1.2688
