Cable holds in red for the sixth straight day and attempts to extend steep descend from last week’s peak at 1.4376 (the highest level after Brexit vote).
Strong bearish signal was generated on Monday’s break and close below pivotal support at 1.3965 (Fibo 61.8% of 1.3711/1.4376 rally / 05 Apr trough).
Fresh extension lower today penetrated thin daily cloud (spanned between 1.3931/01) but stalled above cloud base and returned above the cloud.
This could be initial signal of bounce as slow stochastic turned sideways in deep oversold territory, suggesting bears may take a breather.
Formation of daily Tenkan-sen/Kijun-sen bear-cross and firmly bearish momentum studies signal limited corrective action before bears resume.
Break through cloud base would open rising 100SMA (1.3854) and could trigger further bearish acceleration on break.
Broken pivot at 1.3965 marks solid resistance, with extended upticks expected to hold below psychological 1.40 barrier (also 55SMA).
Res: 1.3931, 1.3953, 1.3965, 1.4000
Sup: 1.3901, 1.3868, 1.3854, 1.3780
