Cable extends weakness to new two-week low at 1.2923 in early European trading on Tuesday, pressured by fading optimism regarding Brexit talks between UK government and the main opposition party.
Extension of steep fall from 3 May high at 1.3179 broke below 1.2939 (Fibo 76.4% of 1.2865/1.3179) on Tuesday, adding to negative signal generated on Monday’s close below 200SMA (1.2959).
Bears eye key near-term support at 1.2865 (25 Apr) as daily MA’s in bearish setup support the notion, but flat momentum and oversold stochastic warn. UK jobs data are key event for pound today and eyed for fresh signals (Apr Avg earnings 3.4% f/c vs 3.5% prev, Apr jobless claims 24.2K f/c vs 28.3% prev).
Broken 200SMA marks solid barrier, which needs to cap and keep negative structure intact, while return and close above would slow bears.
Res: 1.2958, 1.2980, 1.2996, 1.3010
Sup: 1.2923, 1.2900, 1.2889, 1.2865
