Cable is holding within narrow consolidation in early Thursday’s trading, following 200 pips- wide range on Wednesday, when the pair was boosted by better than expected UK retail sales data and then hit strongly on hawkish tone from Fed.
The pair spiked to 1.3655 (the highest since June 2016) just before Fed and fell sharply to day’s low at 1.3452 after hawkish Fed boosted the greenback.
Despite hitting fresh low at 1.3452, cable is still holding above lows of past three day’s congestion and pivotal support at 1.3461 (Fibo 61.8% of 1.3148/1.3655 upleg).
Long upper wicks of Wed/Tue daily candles weigh on near term action, along with daily RSI which is reversing from overbought territory.
Sustained break below 1.3461/52 would trigger fresh bearish acceleration towards 1.3400 (rising daily Tenkan-sen and spark further downside on break here.
The pair may stay in prolonged consolidation while 1.3452 support holds.
Res: 1.3513, 1.3551, 1.3618, 1.3655
Sup: 1.3461, 1.3452, 1.3400, 1.3348