Cable closed firmly in red on Wednesday and extended dips below key supports at 1.2866/67 (daily Tenkan-sen / 10SMA), driven lower by hawkish FED and rising Brexit fears.
Although there was no clear break lower so far (dip to the session low at 1.2829 was quickly reversed as thick 4-hr cloud continues to underpin), bearish signal has been generated on Wednesday’s Bearish Engulfing which may trigger stronger easing.
Close below Tenkan-sen / 10SMA would be seen as additional negative signal for extended correction towards next key supports at 1.2770/55 (lows of former consolidation) and 1.2725 (rising 20SMA).
Conversely, bounce back above 1.2900 handle would ease immediate downside pressure, while return above past three days highs at 1.2940 is needed to neutralize and re-focus barriers at 1.2963 and 1.3.
Res: 1.2900, 1.2945, 1.2963, 1.3000
Sup: 1.2829, 1.2800, 1.2770, 1.2755
