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Cable holds negative tone in early Thursday’s trading, after the action on Tue/Wed was strongly rejected in both directions and left two long-legged daily Doji candles, signaling strong indecision.

Negative momentum and repeated failures to clear falling 10SMA (currently at 1.2763), keep near-term bias with bears for renewed attempt through key supports at 1.2695/61, after bears spiked to 1.2658 low on short-lived action.

Traders remain very cautious, as parliament debates about Brexit deal and will vote on it on 11 Dec.

With very strong Brexit opposition, possibilities that the deal will not be approved are high.

Fears rise on scenario of disorderly Brexit, which could have strong negative impact on the UK economy.

Bearish scenario on sustained break below 1.2695/61 pivots, would risk acceleration towards next strong supports at 1.2500 zone.

On the other side, close above 10SMA would ease persisting bearish pressure, but stronger bullish signal could be expected on lift above falling 20 and 30SMA’s (1.2816 & 1.2857 respectively).

Res: 1.2737, 1.2763, 1.2816, 1.2857
Sup: 1.2695, 1.2671, 1.2658, 1.2600

Chinese Commerce Ministry spokesman Gao Feng repeated in a regular press briefing that the meeting between Xi and Trump in Argentina was "very successful and has reached important consensus on economic and trade issues." He added both countries have "high degree of interest in economic and trade issues and have natural and complementary structural need". And team from both sides are working closely to reach an agreement within the next 90 days. He also added the "ultimate goal" is to cancel all "raised" tariffs. (He didn't say all tariffs).

Gao also explained that the agreement will start with agricultural products, energy, automobiles, etc. And both sides would "immediately implement specific issues that the two sides have reached consensus." During the 90 days period, there will be "conduct consultations on issues such as intellectual property protection, technical cooperation, market access, and trade balance", in accordance with a clear timetable and roadmap.

Besides, "in the fields of protecting intellectual property rights, promoting fair competition, and relaxing market access" Gao said "China and the United States and enterprises of both countries share common demands, which is also in line with China's consistent direction of deepening reform and opening up".

The press release in simplified Chinese.

Pivot (invalidation): 5.3430

Our preference Long positions above 5.3430 with targets at 5.4210 & 5.4570 in extension.

Alternative scenario Below 5.3430 look for further downside with 5.3050 & 5.2700 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 0.7260

Our preference Short positions below 0.7260 with targets at 0.7200 & 0.7160 in extension.

Alternative scenario Above 0.7260 look for further upside with 0.7280 & 0.7300 as targets.

Comment The RSI has broken down its 30 level.

Pivot (invalidation): 1.3335

Our preference Long positions above 1.3335 with targets at 1.3440 & 1.3480 in extension.

Alternative scenario Below 1.3335 look for further downside with 1.3300 & 1.3265 as targets.

Comment The RSI advocates for further advance.

Pivot (invalidation): 0.9985

Our preference Short positions below 0.9985 with targets at 0.9945 & 0.9925 in extension.

Alternative scenario Above 0.9985 look for further upside with 1.0005 & 1.0025 as targets.

Comment The RSI is bearish and calls for further downside.

Pivot (invalidation): 113.05

Our preference Short positions below 113.05 with targets at 112.60 & 112.30 in extension.

Alternative scenario Above 113.05 look for further upside with 113.25 & 113.50 as targets.

Comment The RSI is bearish and calls for further decline

Pivot (invalidation): 1.2760

Our preference Short positions below 1.2760 with targets at 1.2705 & 1.2670 in extension.

Alternative scenario Above 1.2760 look for further upside with 1.2800 & 1.2840 as targets.

Comment A break below 1.2705 would trigger a drop towards 1.2670

Pivot (invalidation): 1.1360

Our preference Short positions below 1.1360 with targets at 1.1330 & 1.1310 in extension.

Alternative scenario Above 1.1360 look for further upside with 1.1380 & 1.1410 as targets.

Comment The RSI shows downside momentum.

In a BBC radio interview, UK Prime Minister Theresa May tried to play down the chance of delaying the December 11, Tuesday, Brexit vote in the parliament. And she added what she's doing is leading up to the vote, rather than talking about delaying it.

May said that there are three options for the MPs. The first one is leaving EU with a deal, that is her deal. Second is leading EU with no deal. And the final one is having no Brexit at fall. She also insisted that if the deal is voted down, it's up for those who opposed to propose a plan B.

Separately, the European Court of Justice said it will deliver the judgement, on December 10 at 0800GMT, on whether UK can unilaterally reverse Brexit. That would be a day ahead of the scheduled UK parliamentary vote. Earlier this week, ECJ's advocate general said that UK has the right to withdraw Brexit notice unilaterally, up to the point of formal conclusion of the deal. It's generally expected, while not binding, ECJ will follow the advocate's opinion.