Bears are taking a breather following two-day pullback from new recovery high at 1.2583b dipped to 1.2412 and pressured key support at 1.2399 (top of thick daily cloud).
Today’s action is holding below 10DMA (1.2440) after Monday’s dip failed to register close below the moving average.
Daily studies favor further weakness as momentum and stochastic are in steep descend, with close below 10DMA to add to negative near-term outlook.
Violation of daily cloud top would generate negative signal for deeper correction towards next pivot at 1.2343 (Fibo 38.2% of 1.1958/1.2582).
All eyes are on today’s UK Supreme Court meeting regarding PM Johnson’s decision to suspend the parliament, as court is going to a whether the decision was lawful or not.
If court rules that Johnson’s action was not legal that would signal the UK parliament would gather again before 14 Oct and offer support to sterling.
Conversely, pound might come under increased pressure if court verifies PM Johnson’s decision.
The Court is expected to deliver its decision today at 9:30 GMT.
Res: 1.2444, 1.2474, 1.2501, 1.2526
Sup: 1.2412, 1.2399, 1.2384, 1.2343
