Cable dipped to new low at 1.3211 in early Friday’s trading, in extension of previous day’s strong fall, when the pair was down 09% for the day.
Strong bearish acceleration of Euro on dovish ECB dragged pound with negative impact persisting.
Today’s extension approached key support at 1.32007/4 (weekly cloud top /29 May low, the lowest since November 2017), violation of which would generate strong bearish signal and expose next pivot at 1.3153 (Fibo 61.8% of post-Brexit 1.1930/1.4376 recovery phase).
Bears may take a breather above key supports, on profit-taking and oversold daily techs, however, limited upside action is seen ahead of final attack at 1.320704 pivots.
Upticks are expected to stall under thick 4-hr cloud (spanned between 1.3357 and 1.3392) to keep fresh bears in play.
Res: 1.3272, 1.3302, 1.3328, 1.3357
Sup: 1.3211, 1.3204, 1.3153, 1.3100
