Cable bounced above initial barrier at 1.2200 today, signaling extended recovery from 1.2133 (fresh 7-week low) where bear-leg from 1.2568 showed strong signals of stall.
Double-Doji on Thu-Fri and today’s rally generated initial signal of reversal that requires minimum sustained break above 1.2200.
Further gains need to clear barriers at 1.2250/68 (07 Mar high / falling Tenkan-sen) to open next pivot at 1.2300 zone (lower base / Fibo 38.2% of 1.2568/1.2133 descend).
Correction is also signaled by reversal of slow stochastic from oversold zone and daily RSI starting to point higher.
With technical studies being supportive for extended correction, focus turns on other very important political / economical events that would have strong impact on the pair in coming days.
Broken 1.2200 barrier now acts as initial support and needs to hold dips to keep fresh recovery in play.
Otherwise, near-term risk would shift again towards key near-term supports at 1.2155/33.
Res: 1.2235; 1.2250; 1.2268; 1.2300
Sup: 1.2200; 1.2155; 1.2133; 1.2100