Steep fall extends into fifth straight day, with the pair falling nearly 4% in past as sterling remains under increased pressure from risk aversion and growing geopolitical tensions, while negative economic data warn that the UK economy is likely to slow significantly this year.
Fresh extension lower, following Tuesday’s 1.3% drop, establishes below 1.2600 handle, trading at the lowest levels in 21 month.
Bears eye key Fibo support at 1.2494 (61.8% of 1.1409/1.4249) where bids may emerge as 4-hr and daily studies are oversold.
Limited upticks should stay below falling daily Tenkan-sen 1.2815, to offer better selling opportunities, as negative sentiment is likely to persist and keep the pound in red for prolonged period, due to escalating situation with economic and political impact from the war in Ukraine.
Res: 1.2597; 1.2653; 1.2697; 1.2748.
Sup: 1.2541; 1.2494; 1.2400; 1.2359.
