Near-term tone remains bearishly aligned following past two days fall that cracked strong support at 1.2400 (100SMA) and was contained by daily cloud top at 1.2380 for now). Prevailing bearish tone on daily studies, following recovery rejection at 1.2567 Fibo resistance and subsequent fall, keep near-term focus at the downside. However, sustained break below 55/100 SMA’s (that now formed bearish cross) and penetration into daily cloud, is needed to generate stronger bearish signal for further retracement of 1.1986/1.2704 upleg. On the flip side, daily Tenkan-sen offers solid resistance at 1.2475, followed by daily Kijun-sen at 1.2525 and upper breakpoints at 1.2567/80. Past two days weakness was driven by news about Brexit/Scottish referendum, with focus turning on the speech of Donald Trump, which may push the pound further down or trigger fresh acceleration higher, if he fails to satisfy traders’ expectations.
Res: 1.2448, 1.2460, 1.2475, 1.2525
Sup: 1.2398, 1.2380, 1.2345, 1.2300
