Cable holds in red for the fourth straight day and pressures psychological 1.30 support after bearish signal was generated on eventual break and close below key 200SMA support (1.3041) on Monday, as well as completion of failure swing pattern on daily chart.
UK Services PMI miss on Tuesday (Jan 50.1 vs 51.1 f/c) added to negative tone, as the pair is losing bullish momentum and daily RSI / MACD / are heading south.
Bears may face strong headwind at 1.30 support zone (psychological / rising 20SMA) as slow stochastic is strongly oversold, but negative outlook would remain while broken 200SMA caps.
Eventual break below 1.3000 / 1.2979 (20SMA) would signal further weakness and threaten larger bulls, with violation of 1.2904 pivot (Fibo 38.2% of 1.2397/1.3217 / 100SMA) needed to confirm reversal and signal stronger retracement of 1.2397/1.3217 ascend.
Res: 1.3041, 1.3090, 1.3114, 1.3160
Sup: 1.3000, 1.2979, 1.2904, 1.2881
