Cable bounces in early Tuesday’s trading, following retest of new 32-month high on Monday and subsequent one cent drop.
The pair remains congested within 150-pips range for the second straight week after repeated failures to clearly break through 1.37 resistance zone, with the downside attempts being contained by 20DMA (currently at 1.3647) which marks range’s floor.
Weekly and monthly Doji candles signal strong indecision, as weekly studies are in bullish setup and underpin the action, while monthly chart shows fading bullish momentum and strongly overbought conditions.
Daily techs are also in mixed setup that keeps near-term action directionless, but positive sentiment, fueled by rapid rollout of Covid-19 vaccine in the UK, keeps the pound afloat.
Initial support lays at 1.3647 (20DMA) followed by 1.3607 pivot (range floor / 30DMA), loss of which would weaken near-term structure.
Recent range tops at 1.3750 zone, mark pivotal barrier, reinforced by upper 20-d Bollinger band, with firm break here to generate initial signal of bullish continuation.
Res: 1.3711, 1.3758, 1.3768, 1.3800
Sup: 1.3647, 1.3607, 1.3593, 1.3519