Cable is consolidating above new six-week low (1.2773) in early Friday’s trading, following previous day’s 1.5% fall.
Sterling came under increased pressure on Brexit turmoil, with the latest steps of Britain in attempts to break existing deal and subsequent reaction from the EU, further souring the sentiment.
Current action is likely to mark a pause in recent fall, as the speed and steepness of bearish acceleration from 1.3482 peak, weighs heavily and suggests limited recovery before bears fully regain control.
Massive weekly bearish candle (the pair is on track for the biggest weekly drop since mid-March) adds to negative pressure.
Oversold daily studies would keep bears on hold for some time, with daily cloud top (1.2896) offering solid resistance and stronger upticks expected to stall under 1.30 zone (former pivotal supports, now reverted to resistance) to keep bears in play for fresh attempt towards key supports at 1.2735/1.2692 zone (200DMA/Fibo 38.2% of 1.2251/1.3482/100DMA).
Weak fundamentals contribute to negative outlook as Brexit saga continues and today’s UK GDP data which missed forecast and warn of possible slowdown in recovery process.
Res: 1.2866, 1.2893, 1.2915, 1.3000
Sup: 1.2773, 1.2735, 1.2721, 1.2692
