Bears attempted to extend Thursday’s strong fall and spiked to 1.3032 on Friday, but losses were so far short-lived, due to strong headwinds from key support at 1.3054 (daily cloud top / Fibo 38.2% of 1.2661/1.3297 ascend / 20SMA / 21 Sep former low).
South-heading momentum on daily chart supports further downside, but mixed setup of daily MA’s suggests bears may hold in extended consolidation before continuing lower.
Weakening Euro continues to influence pound and keep bearish scenario favored.
Weekly close below 1.3054 pivot is needed to complete failure swing pattern on daily chart and generate strong bearish signal for extension of pullback from 1.3297 peak towards psychological 1.30 support, reinforced by converged 30/55SMA’s .
Broken 100SMA (1.3134) is expected cap extended upticks.
Res: 1.3090, 1.3121, 1.3134, 1.3180
Sup: 1.3054, 1.3032, 1.3000, 1.2963
