Cable was down in Asia and returned below 1.2800 handle on fall from session high at 1.2863. Sterling came under fresh pressure after release of results of the latest poll which showed that position of Conservative Party against its main rival, Labour party is weakening, just one week ahead of June 8 vote.
The pair dipped close to 26 May 1.2775 one-month low which offers solid support, reinforced by Fibo 38.2% of 1.2365/1.3047 rally.
Weak studies on lower timeframes see risk of further weakness after overnight’s recovery attempts were capped by hourly cloud and completion of asymmetric H&S pattern on hourly chart would generate stronger bearish signal.
Firm break below 1.2775 pivot would risk bearish acceleration towards 1.2706 (50% retracement and 1.2670 (top of rising daily cloud).
Bear-crosses 10/20SMA’s / daily Tenkan-sen/Kijun-sen) are forming on daily chart and signal increasing downside pressure.
Session high at 1.2863 marks initial resistance, followed by Tuesday’s high at 1.2887, which is expected to cap extended recovery attempts.
Res: 1.2820, 1.2831, 1.2863, 1.2887
Sup: 1.2787, 1.2775, 1.2755, 1.2706
