Cable extends strong fall into second consecutive day, remaining under increased pressure from stronger dollar after upbeat US labor data and relatively hawkish comments from Fed Chair Powell.
Fresh extension lower on Monday cracked the floor of near-term range (1.2875/1.2596), with close below here to generate initial reversal signal, which will look for verification on extension through next pivots at 1.2561 (200DMA) and 1.2525 (Fibo 38.2% of 1.2037/1.2827 rally).
Weakening daily studies (Tenkan & Kijun-sen are in bearish configuration and 14-d momentum remains in negative territory) contribute to bearish fundamentals and keep in play risk of deeper pullback.
Broken Fibo 23.6% and 55DMA (1.2641/61 respectively) turned to resistances, guarding upper pivot at 1.2680 (top of thick daily Ichimoku cloud, reinforced by falling Tenkan-sen).
Res: 1.2641; 1.2661; 1.2680; 1.2747.
Sup: 1.2561; 1.2525; 1.2468; 1.2432.
