Cable bounces from new ten-week low at 1.2695 on Wednesday, consolidating after strong fall on Mon/Tue, with stronger recovery on profit-taking after nearly 3% monthly fall, not ruled out.
Overextended daily techs support scenario but so far lacking firmer signal as oversold daily slow stochastic and momentum studies are in sideways mode.
Overall bears remain intact on bearish techs and persisting fears over stalled Brexit talks, with additional negative tones from warning that no-deal Brexit would keep the UK economy in prolonged recession.
The BoE MPC is meeting on Thursday with wide expectations for unchanged policy, which could keep the pound under pressure, with US labor data, due on Friday, expected to provide fresh signals.
Weaker than expected readings would deflate dollar and give breather to pound’s bears, but limited recovery could be expected while falling 10SMA (1.2879) caps upticks.
Res: 1.2752, 1.2778, 1.2811, 1.2852
Sup: 1.2695, 1.2661, 1.2638, 1.2588
