Bears are taking a breather around 1.2811 (broken Fibo 76.4% of 1.2661/1.3297 rally) after strong bearish acceleration in past two days cracked psychological 1.2800 support and posted new seven-week low at 1.2796 but failed to close below 1.281 Fibo support. Narrow consolidation signals that bears remain firmly in play, as concerns about complete collapse of Brexit talks soured the sentiment and triggered strong sell-off and limited consolidative/corrective action could offer better selling opportunities. Adding to negative outlook is firm bearish setup of daily techs, with further negative signal expected from strong bearish weekly close (the biggest weekly fall since the first week of August). Close below 1.2811 pivot would expose key support at 1.2661 (15 Aug low) violation of which would signal completion of 1.2661/1.3297 corrective phase and open way for extension of extension of larger downtrend from 1.4376 (2018 high, posted on 17 Apr). Strong resistances at 1.2904 (broken Fibo 61.8%) and 1.2921 (former higher base) are expected to cap extended upticks.
Res: 1.2825, 1.2890, 1.2904, 1.2921
Sup: 1.2811, 1.2796, 1.2729, 1.2697
