Cable is holding within 1.21/1.22 range ahead of UK IP data / Trump
|Cable eased to 1.2150 zone in Asia, after repeated recovery rejection just under strong 1.2200 resistance.
Near-term action is holding within 1.2105/1.2196 range and is consolidating recent sharp fall from 1.2428 (06 Jan recovery high).
Overall structure is bearish and fears of ‘hard Brexit’ persist, keeping the pair under pressure, as the price returned below cracked neckline of asymmetric daily H&S pattern.
However, flat hourly studies may keep the price in extended consolidation, ahead of key events today: UK Industrial Production data and Trump’s news conference, which may accelerate near-term price action.
Firm break below 1.2105 would open key supports at 1.2000 zone and signal fresh weakness on break lower.
Alternatively, sustained break above 1.2200 barrier would delay bears for extended correction which would expose next pivot at 1.2268 (daily Tenkan-sen line).
Res: 1.2196; 1.2219; 1.2268; 1.2305
Sup: 1.2146; 1.2105; 1.2081; 1.2000
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