Cable remains in red and extends weakness into fifth straight day on Tuesday, hitting the lowest levels since 03 Jan. Pound is weighed down by fears of no-deal Brexit, as Boris Johnson remains favorite candidate to succeed Theresa May as Prime Minister and his stance that the Britain needs to leave EU by 31 Oct deadline regardless to divorce with or without deal, increases concerns among traders. Monday’s close below previous low at 1.2559 (31 May) was negative signal and fresh weakness pressures Fibo support at 1.2508 (76.4% of 1.1930/1.4376), break of which would open way towards key med-term support at 1.2397 (2019 low, posted on 3 Jan). Bears may slow on deeply oversold daily stochastic which warns of corrective action. Falling 5SMA offers solid resistance at 1.2604, which should ideally cap and guard pivotal barrier at 1.2654 (converged 10/20SMA’s in attempt to create bear-cross).
Res: 1.2559, 1.2604, 1.2637, 1.2654
Sup: 1.2508, 1.2481, 1.2433, 1.2397
