The cross hit new nearly three-month low at 0.8905 on Tuesday as pound rallied across the board on fresh weakness of the dollar, while Euro shows strong hesitation at psychological 1.20 resistance. Monday’s recovery attempts were short-lived and left daily candle with long upper shadow, which signals that the upside remains well protected. Repeated close below 100DMA on Monday added to bearish signals as broken indicator now offers strong resistance at 0.8947. Bears eye target at 0.8863 (Fibo 61.8% of 0.8670/0.9175 / 8/9 June higher base) which guards the top of thick monthly cloud (0.8818). Rising bearish momentum on daily chart support scenario, but south-heading stochastic, deeply in the negative territory warns.
Res: 0.8923, 0.8947, 0.8970, 0.8982
Sup: 0.8905, 0.8863, 0.8818, 0.8777
