The pair extends pullback from multiple upside rejections at 114 zone to one-week low on Thursday, maintaining bearish near-term stance, following double-Doji on Mon/Tue and Wednesday’s close in red.
Fresh risk aversion on rising concerns over Brexit minister’s resignation boosted safe-haven demand, pushing the pair lower.
Weakened near-term techs support fresh bears, but daily studies maintain strong bullish momentum and keep bulls from 111.37 in play.
Violation of rising 10SMA (113.57) is seen as initial negative signals, which could be increased on break below next pivot at 113.12 (Fibo 38.2% of 111.37/114.20) but bulls are expected to keep control while the pullback holds above daily cloud (cloud top lays at 112.82).
Stronger reversal signal could be expected on break and close below daily cloud top which would sideline bears and signal deeper correction.
Res: 113.57, 113.67, 114.00, 114.20
Sup: 113.12, 113.05, 112.82, 112.61
