Cable fell sharply on comments from EU’s chief Brexit negotiator Barnier who said on Thursday that Brexit talks are in impasse as negotiations got stuck over the amount Britain should pay on divorce.
Situation is seen very worrying for big number of projects in Europe and for those who contribute.
News sent pound sharply lower across the board.
Cable dipped to 1.3141 in mid-Thursday’s trading and retested strong support provided by 55SMA on strong bearish acceleration after bulls stalled at 1.3266 3266 (Fibo 38.2% of 1.3655/1.3026 descend).
Fresh weakness weakened near-term structure as sharp fall surged through thick hourly cloud and pressures 55SMA pivot, loss of which is needed to confirm an end of corrective phase from 1.3026 and lower top at 1.3266 for renewed attempts towards 1.3026 (06 Oct low / 100SMA) and psychological 1.3000 support.
Immediate downside risk would reduced while 55SMA holds, but bounce and close above 10SMA (1.3204) is needed to neutralize and shift focus higher.
Res: 1.3164; 1.3200; 1.3266; 1.3318
Sup: 1.3136; 1.3074; 1.3026; 1.3000