Cable cracked 200SMA barrier on fresh upside attempts in early Thursday’s trading after repeated rejection at near-term congestion floor on Tue/Wed. Sterling received fresh support from news the UK is prepared to stay in EU customs union beyond 2021, but recovery action requires confirmation on firm break above 200SMA (1.3553). The notion is supported by strengthening momentum studies. On the other side, daily MA’s in full bearish setup and thick falling 4-hr cloud maintain bearish pressure, with repeated close below 200SMA needed to keep bearish near-term bias in play. Eventual break below congestion low (1.3451) and another key support at 1.3442 (Fibo 38.2% of 1.1930/1.4376 ascend) would generate strong bearish signal for continuation of short-term downtrend from 1.4376 (17 Apr peak). Initial bullish signal would be generated on close above 200SMA, however, firm break above congestion top at 1.3617 is needed to signal formation of base and stronger recovery.
Res: 1.3530, 1.3553, 1.3569, 1.3617
Sup: 1.3481, 1.3451, 1.3442, 1.3400
