The downside remains at risk after Tuesday’s recovery attempts were limited, as long red candle from last Friday and Monday’s bearish daily candle with long upper shadow continue to weigh.
The pair hit fresh marginally lower low at 1.3430 on Monday, but dip was short-lived, as higher base at 1.3450, despite being under pressure, holds dips for now.
Prolonged sideways mode could be expected while the latter holds, as daily techs remain in firm bullish setup and overall bulls are still intact.
Today’s speech of Fed Chief Yellen could spark fresh action, with dovish tone from Fed to boost pound while hawkish stance would put the pair under pressure for final break below 1.3450 base and bearish acceleration towards 1.3402 (daily Tenkan-sen) and 1.3318 (Fibo 38.2% of 1.2773/1.3655 ascend).
Res: 1.3514, 1.3570, 1.3595, 1.3618
Sup: 1.3450, 1.3430, 1.3402, 1.3318