Cable returned to red during early Monday’s trading, as hopes of reversal, indicated by Friday’s long-tailed Doji faded, warning of extension of pullback from new 2020 high (1.3482) posted on 1 Sep.
Bears pressure cracked Fibo support at 1.3191 (23.6% of 1.2251/1.3482 / rising 20DMA), with clear break here to spark fresh acceleration lower and increase risk of dip towards key supports at 1.30 zone (psychological / Fibo 38.2% of 1.2251/1.3482 / Aug low).
Technical studies on daily chart support scenario as falling 14-d momentum is at the border-line of negative territory, RSI/Stochastic head south and 5/10DMA’s are converging in attempt to form bear-cross.
Weak economic data and fresh news suggesting rising chances of no-deal Brexit, keep the pound at the back foot.
Res: 1.3278, 1.3301, 1.3318, 1.3357
Sup: 1.3191, 1.3147, 1.3099, 1.3053
