Cable extends weakness from upside rejection at 1.2568 and broke below daily cloud (spanned between 1.2311/79) to hit strong support at 1.2260 (Fibo 61.8% of 1.1986/1.2704 rally), the lowest level since 19 Jan.
Long bearish candles of past four days maintain strong bearish tone for further weakness.
Close below 1.2260 is needed to signal fresh extension lower and open next target at 1.2155 (Fibo 76.4%), with acceleration towards psychological 1.2000 support, not ruled out.
Twist of daily cloud in two days, ads on negative outlook.
Former strong support, now reverted to resistance, daily 100SMA (currently at 1.2405) is expected to cap extended corrective rallies on oversold slow stochastic on daily chart.
Res: 1.2311. 1.2379. 1.2405. 1.2454
Sup: 1.2260. 1.2200. 1.2155. 1.2100
