Sterling extends weakness below pivotal support at 1.2700 on Tuesday, as Monday’s strong upside rejection at daily cloud top and close in red weighed on market. The pair accelerated further down on dovish comments from BoE’s Carney about interest rates on Tuesday. Eventual break below 1.2700 (Fibo 61.8% of 1.2635/1.2817 upleg) signaled double-top at 1.2817/14, where recovery attempts stalled and opened way for full retracement of 1.2635/1.2817correction. Near-term focus turned lower on break of 1.2700 handle, with downside pressure increasing on formation of 10/55SMA bear-cross. Higher base and key support at 1.2635 zone, reinforced by 100SMA is coming under pressure, with break here to signal extension of broader downtrend from 1.3000 zone towards next strong support at 1.2556 (200SMA).
Res: 1.2700, 1.2750, 1.2775, 1.2793
Sup: 1.2667, 1.2635, 1.2600, 1.2556
