Lows today touched 1.2842 before moving higher
And that coincides with the downwards trendline formed from May as shown above. The channel highlighted continues to define the lower highs and lower lows pattern in the pair and until that breaks, it remains very much a bearish case for cable still.
But for now, the move lower appears to be kept in check by the bottom side of the channel.
It is a tentative support level but it's an area where sellers will be looking to lock in profits and buyers are able to define and limit risk for entries as well, so that explains why we are seeing price bounce a little over the last two days when it approached the trendline.
Looking at the near-term chart:
There also isn't much to suggest that things are looking optimistic for buyers despite the minor bounce. There is resistance seen at 1.2897 with offers lined up at 1.2900 as well that will help to limit any upside move for the time being.
Above that, there is the 100-hour MA (red line) @ 1.2944 to navigate through followed by resistance around 1.2950-60 with the 1.3000 figure level next in line followed by the 200-hour MA (blue line) @ 1.3023.
But ultimately, for buyers it is all about ending the lower highs and lower lows pattern as well as exiting the trendline resistance on the daily chart above - which now sits around 1.3175.