Sterling fell below psychological 1.30 support against the dollar in fresh bearish acceleration on Monday, signaling continuation of bear-leg from 1.3297 peak, after Friday’s action ended in long-legged Doji candle with long upper shadow.
Fresh bears broke into thick daily cloud (cloud top lays at 1.3012, reinforced by 30SMA) and violated next strong supports at 1.2988 (55SMA) and 1.2980 (50% of 1.2661/1.3297 ascend), generating further negative signals.
Fresh strength of the greenback keeps pound at the back foot, with risk of further weakness towards next key supports at 1.2904 (Fibo 61.8%) and 1.2874 (daily cloud base).
Daily MA’s turned into bearish configuration and momentum heads south and deeper into negative territory, support negative scenario.
Broken cloud top / 30SMA mark solid resistance at 1.3012, with extended upticks expected to hold below broken 20SMA (1.3070).
Res: 1.2988, 1.3012, 1.3054, 1.3070
Sup: 1.2963, 1.2904, 1.2874, 1.2811
