Modest recovery from new seven-week low at 1.2867 (Wednesday’s low) hit high at 1.2919 in early Thursday’s trading, with bears taking a breather after UK PM May received support from her party, despite dissonant tones that were coming recently from the opposition within the party. Profit-taking after Wednesday’s 0.8% fall, which also generated strong negative signals on close below pivotal supports at 1.2921 (former higher base) and 1.2904 (Fibo 61.8% of 1.2661/1.3297), is likely to precede fresh weakness, as overall picture is bearish. Rising bearish momentum and multiple bear-crosses of daily MA’s in full bearish configuration support scenario. Recovery was so far unable to break above initial resistance at 1.2921, with extended upticks expected to stall under strong 1.30 resistance zone (daily cloud base/broken 55SMA/psychological barrier) to keep bearish bias. Fresh bears could stretch towards supports at 1.2811 (Fibo 76.4%) and 1.2785 (05 Sep spike low).
Res: 1.2904, 1.2921, 1.2956, 1.2980
Sup: 1.2867, 1.2811, 1.2785, 1.2729
