Cable hit new nearly three-week low at 1.3010 in fresh bearish acceleration in early European trading on Friday, in extension of Thursday’s 1% fall. Eventual break of three-day congestion and strong fall that resulted in close below 55SMA (1.3066) generated strong bearish signal for attack at key 1.2980/60 support zone (trendline support/200SMA/11 Mar trough). Weak sentiment and rising bearish momentum weigh on pound as traders await for fresh news from Brexit. UK lawmakers are going to vote for the third time on PM May’s Brexit plan today, after the plan was strongly rejected in previous two votes. PM May looks for further Brexit delay that would give her time to eventually get her plan passed through the parliament. On the other side, the EU approved delay from today’s original due date when the UK was supposed to exit the union until 12 Apr, with possibility of extension until 22 May, but only if the plan will be approved on today’s vote. All options remain on the table and uncertainty remains high that keeps sterling under strong pressure. Break below 200SMA/bull-channel support line would signal further weakness.
Res: 1.3070, 1.3123, 1.3153, 1.3168
Sup: 1.3005, 1.2980, 1.2960, 1.2923
