Cable – bears aim to break through the daily cloud base following a period of consolidation

Cable is currently in an extended consolidation phase around the breached psychological support level of 1.30, as larger bears take a moment to consolidate above key support levels.

In the near term, price action remains within the daily Ichimoku cloud, which spans between 1.3063 and 1.2965. This consolidation range is capped by the cloud’s upper boundary and the declining 10DMA, reinforcing the bearish sentiment.

Negative momentum is still pronounced on the daily chart, with the Tenkan and Kijun-sen lines diverging after forming a bear-cross, which continues to exert downward pressure.

Bears are focusing on the crucial support level at the 1.2960 zone (daily cloud base / Fibo 61.8% of the range 1.2864/1.3434 / 100DMA). A decisive break below this level would signal a strong continuation of the broader downtrend that began at the 1.3434 high (recorded on September 26, 2024), with subsequent targets at 1.2846 (Fibo 76.4%) and 1.2798 (200DMA).

Only a sustained break above the daily cloud would change this outlook and pave the way for a more significant bounce.

Res: 1.3000; 1.3034; 1.3063; 1.3102
Sup: 1.2965; 1.2958; 1.2900; 1.2846