Cable traded within narrow range in Asia and pressuring 1.2800 support zone after strong fall on Tuesday closed well below key supports at 1.2857/48 (daily cloud base / Fibo 61.8% of 1.2588/1.3268 rally). Strong signal for bearish continuation of the downtrend from 1.3268 has been generated on eventual break below near-term 1.2831/1.2917 congestion and extension below daily cloud.
Fresh weakness also dented another important support at 1.2811 (12 July trough), firm break of which is needed to confirm bearish resumption towards 1.2749 (Fibo 76.4%).
Strong bearish setup of daily studies favors further downside, with consolidation above 1.2800 handle to precede fresh weakness.
Daily cloud base now acts as solid resistance at 1.2857, along with broken 100SMA (1.2880) and expected to keep corrective upticks capped.
Alternative scenario requires acceleration above daily cloud to sideline immediate bearish threats.
Res: 1.2848, 1.2857, 1.2880, 1.2912
Sup: 1.2806, 1.2749, 1.2715, 1.2647
