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Cable bounces from new nearly two-week low at 1.2827, hit on Monday after the pair registered loss of 2.10% in past three sessions, on steep fall driven by increased Brexit concerns.

Today's recovery attempts were triggered by profit-taking and announcement from EU's chief Brexit negotiator who said that key points of divorce treaty are ready to present to the UK cabinet.

Fresh optimism drove the price higher but the action faced headwinds at 1.2900 zone and stays below, awaiting release of UK labor data for fresh signals.

Strengthening momentum on daily chart supports recovery and oversold slow stochastic also signaling corrective action.

Lift above 1.2946 (Monday's high/falling 20SMA) is needed to generate fresh bullish signal for extension towards upper pivot at 1.2980 (daily cloud base), firm break of which would neutralize existing bearish bias and shift focus higher.

Forecasts for today's UK jobs data are positive (Sep avg earnings f/c 3.0% vs 2.7% prev/Oct jobless claims 4.3% f/c vs 18.5K prev ), with releases above expectations to further boost recovery, however, focus will remain on Brexit talks which proved to be pounds key driver.

Res: 1.2946, 1.2980, 1.3000, 1.3025
Sup: 1.2878, 1.2838, 1.2827, 1.2808

The Euro holds in recovery mode in early Tuesday’s trading after suffering strong losses on Monday (down 0.9% for the day in the biggest one-day fall since 27 Sep).

Bounce from new multi-month low at 1.1215, posted on Monday, showed limited upside action as overall picture remains negative.

The story of Italy’s budget continues to weigh strongly on EURUSD pair, with additional pressure on interest rate divergence, bearish techs and persisting fears over US/China trade conflict.

German Oct CPI came in line with expectations, with immediate focus turning on German ZEW economic sentiment data (Nov -24.2 f/c vs -24.7 prev) which could boost recovery on better than expected release.

Overall picture remains bearish, suggesting limited recovery before bears re-take control.

Former key supports at 1.1300 zone now mark solid resistance, ahead of falling 10SMA (1.1351) which is expected to cap extended upticks and keep bears intact.

Res: 1.1257, 1.1300, 1.1315, 1.1351
Sup: 1.1215, 1.1186, 1.1109, 1.1075

Pivot (invalidation): 5.4790

Our preference Short positions below 5.4790 with targets at 5.4400 & 5.4100 in extension.

Alternative scenario Above 5.4790 look for further upside with 5.5150 & 5.5420 as targets.

Comment As Long as the resistance at 5.4790 is not surpassed, the risk of the break below 5.4400 remains high.

Pivot (invalidation): 0.7185

Our preference Long positions above 0.7185 with targets at 0.7235 & 0.7250 in extension.

Alternative scenario Below 0.7185 look for further downside with 0.7160 & 0.7145 as targets.

Comment The RSI is bullish and calls for further advance.

Pivot (invalidation): 1.3210

Our preference Long positions above 1.3210 with targets at 1.3250 & 1.3270 in extension.

Alternative scenario Below 1.3210 look for further downside with 1.3180 & 1.3160 as targets.

Comment A support base at 1.3210 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 1.0075

Our preference Long positions above 1.0075 with targets at 1.0115 & 1.0135 in extension.

Alternative scenario Below 1.0075 look for further downside with 1.0050 & 1.0030 as targets.

Comment A support base at 1.0075 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 113.75

Our preference Long positions above 113.75 with targets at 114.20 & 114.40 in extension.

Alternative scenario Below 113.75 look for further downside with 113.55 & 113.35 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.2840

Our preference Long positions above 1.2840 with targets at 1.2905 & 1.2945 in extension.

Alternative scenario Below 1.2840 look for further downside with 1.2790 & 1.2750 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.1215

Our preference Long positions above 1.1215 with targets at 1.1275 & 1.1310 in extension.

Alternative scenario Below 1.1215 look for further downside with 1.1185 & 1.1155 as targets.

Comment The RSI calls for a rebound.

Pivot (invalidation): 2765.00

Our preference Short positions below 2765.00 with targets at 2703.00 & 2671.00 in extension.

Alternative scenario Above 2765.00 look for further upside with 2790.00 & 2816.50 as targets.

Comment The RSI shows downside momentum.