Cable holds in red in early Wednesday’s trading and capped by the upper boundary of bull-channel. Double rejection at 1.4244 on Mon/Tue and Tuesday’s bearish close signal double-top formation which could trigger further easing, as profit-taking on month/quarter end would put sterling under increased pressure. On the other side, yesterday’s strong downside rejection at 1.4065, where rising 10SMA contained dip and subsequent bounce left long-tailed daily candle, could be supportive. Daily studies are firmly bullish and supportive for fresh advance, with key supports at 1.4080/40 (rising 10SMA/Fibo 38.2% of 1.3711/1.4244 rally) required to hold extended dips and keep bulls in play.
Res: 1.4200, 1.4218, 1.4244, 1.4277
Sup: 1.4133, 1.4080, 1.4065, 1.4040
