Cable slid to new 2018 low on Monday, as fresh rally of the dollar (sparked by easing trade tensions between US and China and already boosted by higher US yields and expectations of more aggressive Fed) eventually pushed the pair below two-week congestion floor (1.3451).
Bearish signal on break of 1.3451/42 pivots (range floor / Fibo 38.2% of 1.1930/1.4376 recovery rally) needs daily close below for confirmation and could result in extension towards 1.3205 (weekly cloud top).
Broken former range floor at 1.3451 now marks initial resistance, ahead of falling 10SMA at 1.3511.
Res: 1.3451, 1.3482, 1.3511, 1.3558
Sup: 1.3400, 1.3354, 1.3330, 1.3302
