Cable stands at the back foot, weighed by Tuesday’s bearish daily candle with long upper shadow, formed after strong upside rejection on a false break of descending 10DMA and subsequent weakness. The action generated an initial signal of a bearish continuation pattern on a daily chart, which looks for more evidence to be confirmed.
Fresh bears need a daily close below 1.3770 pivots (Tuesday’s low / Fibo 76.4% of 1.3731/1.3897 recovery leg) to signal an end of the corrective phase.
This would confirm a bearish stance for a retest of last Friday’s low at 1.3731, violation of which would risk extension towards 1.3670 (Mar/Apr higher base) and 1.3580 (Fibo 23.6% of 1.1409/1.4249).
Falling 10DMA (1.3834) marks solid resistance which needs to continue capping and keep bears intact.
Res: 1.3803, 1.3834, 1.3897, 1.3919.
Sup: 1.3770, 1.3731, 1.3670, 1.3600.
