Windsor Brokers - Short Term Technical Analysis for Majors (07:00 GMT)

The remains in near-term consolidative mode, as 1.2934 proved to be solid support after being retested and holding for now, with brief attempt above 1.3000 barrier, signaling possible corrective action. Improved hourly studies support the notion, however, sustained break above 1.3000 and regain of minimum 1.3050/60 is required to confirm **** and trigger fresh recovery. Otherwise, further weakness would be likely scenario, as 4h indicators hold in the negative territory and price action being capped by descending 20 day EMA.

Cable bounces off yesterday’s fresh low at 1.5276, following bearish extension below psychological 1.5300 support. Prevailing negative tone on lower timeframes studies, keeps the downside focused, with corrective rallies seen limited, while below 1.5383/1.5410 barriers. Overall negative tone and break below main bull-trendline, sees increased risk of fresh weakness towards pivotal 1.5200 support zone, 50% of 1.4830/1.5603 / April’s higher platform.

Near-term focus is starting to shift towards the downside and open way for corrective pullback, as the pair holds below 102.00 barrier. Loss of initial support at 101.50, increases downside risk, as hourly studies slide into negative territory and yesterday’s Doji candle signaling near-term indecision. However, confirmation would require break below 101.00 handle to open Fibonacci supports at 100.80/38. Strong support and breakpoint at 100.00 is expected to hold dips, as larger picture bulls remain fully in play, with current reversal seen as corrective and preceding fresh rally.

The pair consolidates recent losses that bottomed at 0.9939, after the parity level has been lost and now acting as initial resistance, reinforced by hourly 55 day EMA. Possible stronger correction cannot be ruled out, as 4h conditions are oversold and hourly indicators are heading north. However, signal of basing attempt would require regain of initial 1.0030/45 barriers, while regain of 1.0100, 50% of 1.0253/0.9939 fall, would confirm recovery. Overall picture remains bearish, as the pair commenced fresh bear-phase, following break below multi-month range floor.