Cable is consolidating on Monday after suffering heavy losses on Friday as the greenback rallied on upbeat US jobs data.
Friday’s close in red and below 10SMA was a signal that the pair may extend lower after renewed upside attempts stalled at 1.4277 on Thu/Fri.
Broken 10SMA (1.4143) marks initial resistance and so far caps today’s action, maintaining downside risk while the price remains below.
Extended bears would look for renewed attack at strong support at 1.40 zone (Fibo 38.2% of 1.3457/1.4344, 11/25 Jan upleg) and 30 Jan correction low at 1.3979.
The notion is supported by south-moving daily RSI / slow stochastic and Friday’s long bearish candle weighing on near-term action.
Lift and close above 10SMA would sideline immediate downside risk and shift near-term focus higher.
Res: 1.4143, 1.4156, 1.4202, 1.4232
Sup: 1.4081, 1.4050, 1.4000, 1.3979
