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).

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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


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