Cable bounced above 1.2800 handle in early Friday’s trading after Thursday’s action ended in Doji candle and signaling larger bears may take a breather.
The notion is supported by oversold slow stochastic on daily chart, with today’s bullish close needed to confirm.
Overall structure remains firmly bearish and sees upticks as selling opportunity for extension of larger downtrend towards targets at 1.2749 (Fibo 76.4% of 1.2588/1.3268), weekly Kijun-sen (1.2688) and 200SMA (1.2652).
Daily cloud base (1.2857) reinforced by falling 10SMA, marks solid resistance which is expected to cap recovery attempts.
Res: 1.2836, 1.2857, 1.2871, 1.2912
Sup: 1.2793, 1.2773, 1.2749, 1.2715
