Cable holds in red for the fifth straight day and hit two-week low on Tuesday, extending Monday’s 0.65% fall, sparked by news of increased risk of no-deal Brexit scenario. Monday’s close below 20DMA (1.3187) generated bearish signal which was boosted by today’s extension below 30DMA (1.3152). Bears eye 24 Aug low (1.3053), violation of which would expose key supports at 1.30 zone (Fibo 38.2% of 1.2251/1.3482/psychological/Aug low). Oversold stochastic and revived positive momentum on daily chart warn that bears may lose traction. Near-term action is expected to remain biased lower while capped by 20DMA, with extended upticks expected to remain below 10DMA (1.3268). Only break here would neutralize and generate initial signal of reversal.
Res: 1.3152, 1.3187, 1.3236, 1.3268
Sup: 1.3099, 1.3053, 1.3012, 1.2981
