Cable broke below key support at 1.3101 on Thursday, extending bear-leg from 1.33 zone into third straight day.
Strong bearish sentiment was boosted by comments from BoE’s Deputy Governor who offered no hints about vote for rate hike in August’s policy meeting.
Pound remains under pressure on concerns about the impact on Brexit as well as possibility that BoE may not increase interest rates this year.
Eventual break through 1.3101 pivot cracked weekly 100SMA (1.3071) and pressures support at 1.3038 (03 Nov 2017 low) violation of which would expose psychological 1.30 support. Bearish daily/weekly techs and negative sentiment support scenario, but bears may show hesitation at 1.30 support as studies are oversold.
Falling 10SMA (1.3204) is expected to cap corrective upticks and keep bears intact.
Res: 1.3101, 1.3120, 1.3150, 1.3204
Sup: 1.3066, 1.3038, 1.3026, 1.3000
