Cable remains in red on Wednesday despite hammer candle on Tuesday, weighed down by concerns about Britain’s future relationship with the European Union, as the country is leaving the Union on Friday.
Adding to uncertainty is mounting fear about coronavirus spreading out of China and the negative impact on the economy that it would cause.
Markets also focus BoE’s policy meeting on Thursday, as possibilities of rate cut rise after inflation in the UK hit the lowest since 2016 and other economic indicators gave mixed signals.
Daily studies, on the other side are mixed as MA’s are in negative setup, momentum and RSI are flat, while stochastic heads south.
Bears face headwinds from cracked psychological 1.30 support which guards daily cloud base (1.2960), break of which would firm bears’ grip for extension towards next key level at 1.2919 (Fibo 38.2% of 1.1958/1.3514).
Converged 10/20/30DMA’s (at 1.3058/67 zone) mark solid barrier which needs to hold to keep bearish bias.
Today’s Fed’s verdict would also have significant impact on pound’s near-term performance.
Res: 1.3028, 1.3058, 1.3067, 1.3104
Sup: 1.3000, 1.2675, 1.2960, 1.2919
