A small advance for Cable (GBP/USD) on Tuesday and into Wednesday, to reinforce Monday’s dip and rebound from within our 1.2667/40 support area (off of 1.2652), sustaining upside pressures from Friday’s probe above the 1.2751 resistance, plus the early June reversal above the down trendline from early May, to keep risks higher for Wednesday-Thursday.
The latter April probe below 1.2947 signaled an intermediate-term Double Top pattern and set an intermediate-term bear trend.
For Today:
· We see an upside bias for 1.2763; break here aims for key 1.2814, maybe 1.2853.
· But below 1.2652/40 opens risk down to 1.2608.
Intermediate-term Outlook - Downside Risks: We see a downside risk for 1.2437.
· Lower targets would be 1.2366 and 1.2109
· What Changes This? Above 1.2814 shifts the outlook back to neutral; above 1.3177 is needed for a bull theme.
