Cable accelerated lower on Tuesday after bears took a breather for narrow consolidation on Monday.

Fresh weakness probes below 1.2700 round-figure support and eyes target at 1.2668 (15 Jan spike low), driven by persisting fears of no-deal Brexit.

Additional pressure comes from concerns about who will replace Theresa May as Prime Minister, as betting favorite to win, Boris Johnson, supports scenario of leaving EU without a deal.

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Weak sentiment and bearish daily/weekly techs can push pound lower, as bears may accelerate on triggering stops below 1.2668.

Oversold daily studies warn of adjustment, but without firmer signals for now.

Broken key Fibo support at 1.2773 (61.8% of 1.2397/1.3381) now marks solid resistance which should ideally cap upticks.

Res: 1.2733, 1.2753, 1.2773, 1.2801
Sup: 1.2668, 1.2629, 1.2615, 1.2580


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