Cable dips further in early Monday’s trading, remaining at the back foot, following Friday’s 0.56% fall.
Fresh weakness retraced over 61.8% of last week’s 1.1960/1.2193 recovery leg, which was strongly rejected last Thursday and left a bull-trap above 55DMA.
Near-term structure is negative, as daily studies show strong bearish momentum and a multiple bear-crosses of 10;20;30;55 DMA’s.
Bears pressure psychological 1.20 support, where last week’s action faced strong headwinds and was rejected.
Violation of 1.20 level would risk test of key supports at 1.1960 (Feb 7 spike low and 1.1942 (200DMA), break of which would spark an acceleration towards next key supports at 1.1841/1.1796 (Jan 6 trough/daily cloud base).
Broken Fibo support at 1.2073 (61.8%) now acts as resistance and should ideally cap upticks to keep fresh bears intact.
Res: 1.2073; 1.2100; 1.2144; 1.2179.
Sup: 1.2000; 1.1942; 1.1900; 1.1841.
