Cable traded within narrow consolidation range between Tuesday’s fresh two-month low at 1.2602 and broken 100SMA at 1.2630, which capped the action during Asian session.
The pair maintains bearish bias, following strong fall on Tuesday and risks further downside.
Close below 1.2626 (Fibo 61.8% of 1.2365/1.3047), which Tuesday’s bearish acceleration failed to clear, will generate another bearish signal for extension towards targets and strong supports at 1.2552/49 (200SMA/daily cloud base).
Initial resistance at 1.2630 limited recovery attempts so far and kept intact next barriers at 1.2660 and 1.2700. After dovish comments from BoE’s Governor Carney on Tuesday, Sterling is looking for comments from BoE’s chief economist and MPC member Haldane (who is seen as one of the MPC’s most dovish members) at 11:00 GMT.
Res: 1.2630, 1.2660, 1.2700, 1.2734
Sup: 1.2600, 1.2552, 1.2549, 1.2526
