FxWirePro: 4-pivot points hamper momentum in Cable rallies; interim bulls seem vulnerable despite 3-months prolonged consolidation phase on struggling momentum

On daily charts, the bears manage to break pull back the rallies at stiff resistances of 1.2674, 1.2775, 1.2798 and 1.2866 (pivot points); the current prices remain well above DMAs with bullish crossover.

The price rallies may extend further up to next strong resistances of 1.2812 levels (i.e. 7EMA on monthly terms).

On the contrary, both leading & lagging indicators in the broader perspective, are in the conformity to the major bearish trend, current well below EMAs heading for the retest of multi-year lows.

The current prices well below EMAs despite consolidation phase from last three months.

The downswings have constantly been sliding testing resistance at EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).

RSI’s downward convergence below 38 levels on dailies and below oversold territory signal the strength in the bearish trend.

Stochastic curves on both time frames have been decisive to signal the bearish momentum.

MACD is not deviating from this bearish stance, signals the downtrend to prolong further with its bearish crossover.

Trade tips:

For an intraday trading perspective, it is advisable to buy boundary binaries with the upper strikes at 1.2742 and lower strikes at 1.2467 which would mean upward travel maximum up to 140 pips and 130 pips on southward targets within the binary expiry duration.