Cable remains in red for the third straight day and extends weakness below daily cloud, following bearish signal that was generated on Tuesday marginal close below cloud base.
More negative impact can be expected on expected on lack of positive news regarding Brexit as uncertainty prompts traders out of pound.
With no results from Tory/Labor party talks and rising concerns that UK PM May could be forced to step down, outlook remains negative.
Three-day weakness retraced the largest part of last Friday’s strong rally and pressures important support at 1.3022 (50% of 1.2865/1.3179 upleg / 10SMA) which guards more significant supports at 1.2987/85 (Friday’s low / Fibo 61.8%).
South-heading daily indicators support scenario, with upticks seen as positioning and to be ideally capped by daily cloud base (1.3077) to keep fresh bears in play.
Res: 1.3059, 1.3077, 1.3102, 1.3131
Sup: 1.3022, 1.3000, 1.2985, 1.2939
