Cable fell deeply into daily cloud and hit the lowest since 04 Oct, after rising Brexit fears sparked fresh bearish acceleration through pivotal 1.30 support zone. Disagreement over Brexit within the UK ruling party and the issue with Irish border which remained unsolved after two sides agreed on most of Brexit divorce points, threatens to undermine PM May’s leadership. Today’s fall marks so far the biggest one-day loss in October, with growing negative sentiment risking further weakness, which could accelerate on break below cloud base. Series of significant supports lay ahead: daily cloud base (1.2933); 03/04 Oct lows at 1.2921 and Fibo 61.8% of 1.2661/1.3297 ascend (1.2904), with break here to generate strong bearish signal and risk deeper fall. Weakening techs on daily chart support scenario, but situation over Brexit talks would be key event and pair’s main driver.
Res: 1.2992; 1.3012; 1.3054; 1.3090
Sup: 1.2944; 1.2921; 1.2904; 1.2811
