Cable remains in red on Tuesday and extends weakness after Monday’s fall on downbeat UK Manufacturing PMI (June 48.0 vs 49.2 f/c) and close below three-day congestion that generated bearish signal.
Sterling came under fresh pressure from much weaker than expected UK construction PMI data (June 43.1 vs 49.3 f/c) that marks the weakest result since April 2009.
Fresh bears cracked key Fibo support at 1.2612 (61.8% of 1.2505/1.2783 upleg), with firm break here to confirm reversal and unmask key support at 1.2505 (18 June low, the lowest since 3 Jan).
Daily MA’s are in bearish setup and momentum is negative that supports scenario, however, oversold stochastic may slow bears.
Cluster of converged MA’s at 1.2661/81 zone is expected to cap extended upticks and maintain bearish bias.
Res: 1.2647, 1.2661, 1.2681, 1.2705
Sup: 1.2612, 1.2571, 1.2542, 1.2505
