Cable's recovery from the 30-year low of 1.2789 hit in Asia confirmed a bullish price RSI divergence on the 4-hour chart. This has opened doors for a corrective rally.
However, prices need to break above the daily high of 1.3027 as such a move would add credence to the bullish price RSI divergence and would set in motion a technical correction to 1.3119 - 1.3206 levels. Still, bearish invalidation is seen only if prices see a day end closing above 1.3315 (23.6% of 1.5019-1.2789).
On the other hand, a break below 1.2789 would negate the bullish price rsi divergence and open doors for a further slide to 1.25 levels.
However, prices need to break above the daily high of 1.3027 as such a move would add credence to the bullish price RSI divergence and would set in motion a technical correction to 1.3119 - 1.3206 levels. Still, bearish invalidation is seen only if prices see a day end closing above 1.3315 (23.6% of 1.5019-1.2789).
On the other hand, a break below 1.2789 would negate the bullish price rsi divergence and open doors for a further slide to 1.25 levels.
