Pound’s bearish stance firmed after BoE and increased demand for haven yen over rising geopolitical tensions.
The cross accelerated through important supports at 133.62 (converged 30/55DMA’s) and 133.28 (Fibo 61.8% of 129.29/139.73) and penetrated daily cloud (spanned between 133.03 and 131.33), down 1.2% since opening in Asia.
Momentum is breaking into negative territory on daily chart and MA’s are in bearish setup, adding to negative outlook.
Today’s close below broken Fibo support (133.28) would boost negative signal for test of supports at 131.76 (Fibo 76.4%) and 131.33 (daily cloud base).
Broken supports at 133.28/62 reverted to solid resistances which need to protect the upside and keep bears in play.
Res: 133.28; 133.62; 134.10; 134.51
Sup: 131.76; 131.33; 130.67; 130.00
