Cable - daily cloud top caps for now; focus on Supreme Court ruling on A50
|GBPUSD
Cable eases from fresh 5-week highs at 1.2540, where daily cloud top capped yesterday’s strong rally and today’s attempts to finally break above the cloud.
Easing on overbought conditions is under way, with initial supports at 1.2441/26 (broken 100SMA/ daily cloud base) being intact for now and guarding 1.2410 (Fibo 23.6% of 1.1986/1.2542 rally / 55SMA).
Daily Slow Stochastic is in overbought territory and may generate stronger bearish signal for deeper pullback.
The pair will be looking for the UK Supreme Court decision on A 50, due later today.
Overturn of High Court’s verdict from November could send pound significantly lower, while more likely scenario of Supreme Court decision would further support the pair.
Res: 1.2542; 1.2587; 1.2650; 1.2680
Sup: 1.2441; 1.2426; 1.2410; 1.2330
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