Cable is holding above strong supports at 1.2420/14 (Fibo 38.2% of 1.2107/1.2613 / 100SMA) in early Thursday’s trading, following choppy action on Wednesday.
Uncertainty at the beginning of Brexit process kept traders nervous, with the pair trading within 100-pips range on Wednesday (1.2474/1.2374), but long-legged daily candle signaled strong indecision and no clear direction.
Return above 1.2420/13 pivots slightly eased downside pressure, but risk of fresh weakness exists, as the pair broke into daily cloud (spanned between 1.2356 and 1.2473).
Mixed daily technical studies require break of pivotal points on either side to for clearer direction signal.
At the upside, daily cloud top at 1.2473, reinforced by Tenkan-sen line, marks the first upper trigger, with extension above 1.2500 (top of hourly Ichimoku cloud that caps near-term action) needed to signal stronger upside attempts.
On the downside, loss of 1.2420/13 pivots would risk fresh weakness towards lower triggers at 1.2360/56 (daily Kijun-sen / cloud base) and signal bearish continuation on firm break lower.
Res: 1.2466, 1.2473, 1.2500, 1.2522
Sup: 1.2414, 1.2395, 1.2356, 1.2338