The cross accelerated sharply lower after hawkish stance from BoE today, being down 1.2% for the day so far, in extension fall from 0.8897 on Wednesday.
Fresh weakness turned daily techs into full bearish setup which may result in final push towards key short-term supports at 0.8686/89 (25 Jan / 08 Dec lows).
The cross hit new one-week low at 0.8732, cracking support at 0.8739 (Fibo 76.4% of 0.8686/0.8910 rally) and eyes the last obstacle en-route to 0.8686 target at 0.8716 (01 Feb trough).
However, the action on hourly chart shows that bears may take a breather on strongly oversold hourly studies, but limited upside could be expected for now, as a cluster of bearishly aligned daily MA’s lies above.
Hourly Tenkan-sen (0.8786) is expected to ideally cap upticks.
Bigger picture shows the cross moving within bearish channel since Oct 2017 with supports at 0.8686/89 marking also Fibo 61.8% of larger 0.8312/0.9306, Apr/Aug 2017 ascend) and firm break here would be strong bearish signal for continuation of larger downtrend from 0.9306 (29 Aug peak).
Weekly studies are turning to bearish mode and showing space at the downside which could accommodate further easing.
Res: 0.8786; 0.8804; 0.8840; 0.8856
Sup: 0.8732; 0.8716; 0.8686; 0.8640
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