Cable stands at the back foot in early Tuesday’s trading and pressuring Monday’s low at 1.3412, n bearish acceleration from Asian high at 1.3481.
Yesterday’s strong upside rejection near key 1.3549 barrier and subsequent pullback was negative signal, with near-term sentiment turning into negative mode following disappointing news from Brexit talks on Monday.
The pair is likely to extend correction after repeated rejections at 1.3549 tops and challenge pivotal support provided by rising 10SMA (currently at 1.3391).
Corrective dips are seen as an opportunity to re-join broader uptrend. Ascending 10SMA is initial entry point, but deeper pullback towards strong support at 1.3354 (Fibo 38.2% of 1.3038/1.3549 ascend) cannot be ruled out.
Sustained break below 1.3354 would soften near-term structure, while loss of daily Kijun-sen (1.3294) will be bearish signal.
Res: 1.3481; 1.3500; 1.3549; 1.3595
Sup: 1.3391; 1.3354; 1.3294; 1.3233