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The pair hold firm tone in early Monday's trading and probed through pivotal 113.25 barrier (Fibo 50% of 114.20/112.30 bear-leg / 20SMA).

Fresh bullish acceleration emerged after Friday's action failed to sustain break into thick daily cloud and ended in long-tailed Doji, closing well above cloud top.

This could signal continuation of bull-leg from 112.30 (20 Nov low), as the dollar remains supported by safe-haven demand on rising fears of global growth slowdown and daily tech improve, but still lacking momentum and require close above 113.25 to generate bullish signal and sideline risk of retesting cloud top (112.79).

Res: 113.35, 113.48, 113.63, 114.00
Sup: 113.03, 112.87, 112.79, 112.66

Cable showed little reaction to weekend's Brexit deal and traded within narrow range in Asia on Monday, with slightly higher levels seen in early European trading.

Near-term direction is still unclear, following last Thursday's strong rally and subsequent fall on Friday that keeps the pair within 1.2764/1.2883 range and suggesting extended consolidation.

The pair failed to capitalize on long-awaited Brexit deal, as UK PM May now faces tough work at home, as the agreement needs an approval from the parliament.

Overall picture is bearish and keeps the downside vulnerable, with last week's failure to close above 1.2895/1.2905 pivots (Fibo 38.2% of 1.3174/1.2722/20SMA) adds to negative signals, along with rising bearish momentum on daily chart.

Twist of daily cloud (1.3000 on 03 Dec) was less magnetic than expected but could still attract for fresh upside, with sustained break above 1.2895/1.2905 seen as minimum requirement.

Broken 10SMA marks initial resistance at 1.2850, followed by pivots at 1.2895/1.2905 and 1.2924 (falling 30SMA).

Lows of today/last Friday offer immediate supports at 1.2798/95, guarding higher base at 1.2765 and key supports at 1.2722/1.2661 (15 Nov/30 Oct lows). Lift above 1.29 zone or fall below 1.28 support zone would provide fresh direction signals.

Res: 1.2850, 1.2895, 1.2905, 1.2924
Sup: 1.2795, 1.2764, 1.2722, 1.2695

The Euro regained traction in early European trading and bounced through broken converging 10/20SMA’s (1.1365), after Friday’s low at 1.1327 proved as solid support and contained renewed attack.

Fresh recovery attempts so far retraced over 50% of Friday’s 1.1421/1.1327 fall and unaffected by weaker than expected German Ifo data, as Business climate index fell to 102 in nov, undershooting forecast at 102.30.

This could add to negative signals from last Friday’s weaker than expected German / EU PMI data that push the Euro lower.

Comments from ECB’s Praet, who did not say something substantially different from encouraging signals on underlying strength of bloc’s economy which supports expectations that inflation would rise towards projected levels, but signaling that rate hikes are still on hold as significant stimulus is still needed, kept the single currency at the front foot.

Focus turns towards ECB President Draghi’s speech at the EU parliament, as markets would look for fresh hints about possible rate hikes.

Improving near-term techs support, but mixed signals still come from daily studies, as momentum ticked higher but MA’s stay in mixed setup.

Close above falling 30SMA (1.1393) which repeatedly capped the action in past two days, would generate bullish signal and open way for further recovery.

Last week’s high at 1.1433 and cracked Fibo barrier at 1.1444 mark pivotal resistances, violation of which could accelerate towards key barriers at 1.1472/1.1500 (20 / 07 Nov highs).

Conversely, repeated failure to clearly break above falling 30SMA would keep the downside vulnerable, with bearish signal expected on close below Fri / today’s lows at 1.1327/26.

Res: 1.1393, 1.1421, 1.1433, 1.1444
Sup: 1.1365, 1.1326, 1.1313, 1.1276

Pivot (invalidation): 5.2730

Our preference Long positions above 5.2730 with targets at 5.3110 & 5.3250 in extension.

Alternative scenario Below 5.2730 look for further downside with 5.2460 & 5.2190 as targets.

Comment A support base at 5.2730 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 0.7230

Our preference Long positions above 0.7230 with targets at 0.7260 & 0.7275 in extension.

Alternative scenario Below 0.7230 look for further downside with 0.7215 & 0.7200 as targets.

Comment The RSI is bullish and calls for further advance.

ECB chief economist Peter Praet said in a speech today that "factors related to protectionism, financial market volatility and vulnerabilities in emerging markets are creating headwinds that are becoming increasingly noticeable".

He added that "surveys of euro area business activity and sentiment indicators have softened perceptibly relative to their earlier highs, although they remain in expansionary territory and are still above long-term averages for most sectors and countries."

Here is his full speech. It's actually identical to the one delivered on November 13.

Pivot (invalidation): 1.3240

Our preference Short positions below 1.3240 with targets at 1.3195 & 1.3180 in extension.

Alternative scenario Above 1.3240 look for further upside with 1.3260 & 1.3285 as targets.

Comment The RSI calls for a drop.

Pivot (invalidation): 0.9955

Our preference Long positions above 0.9955 with targets at 0.9990 & 1.0010 in extension.

Alternative scenario Below 0.9955 look for further downside with 0.9930 & 0.9915 as targets.

Comment Technically the RSI is above its neutrality area at 50.

Pivot (invalidation): 112.90

Our preference Long positions above 112.90 with targets at 113.40 & 113.65 in extension.

Alternative scenario Below 112.90 look for further downside with 112.65 & 112.50 as targets.

Comment The RSI is bullish and calls for further upside.

Pivot (invalidation): 1.2840

Our preference Short positions below 1.2840 with targets at 1.2795 & 1.2765 in extension.

Alternative scenario Above 1.2840 look for further upside with 1.2870 & 1.2910 as targets.

Comment Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.