Cable holds in red for the fourth straight day and cracks 20SMA support at 1.2842 on Tuesday. Renewed Brexit concerns prompted traders out of pound, with bears being boosted by weak UK data on Monday.
Technical studies are in bearish mode as daily MA’s are turning into full bearish setup and slow stochastic continues to head south, however, momentum turned sideways after easing and holding for now above its 7SMA, which could partially offset negative signals.
Extension below 20SMA would open next pivotal support at 1.2807 (Fibo 61.8% of 1.2661/1.3043 rally) loss of which is needed to confirm reversal.
UK Construction PMI for Aug and Inflation report are key releases today.
Res: 1.2875, 1.2902, 1.2917, 1.2939
Sup: 1.2807, 1.2751, 1.2697, 1.2661
