Cable held within tight range in Asia on Thursday, consolidating after three-day fall and ahead of final attack at key 1.2605 support (23 May low).
Overall sentiment remains bearish on rising fears of no-deal Brexit, as probability for such scenario rose near 50%.
Strong US dollar which holds near two-year high against its major counterparts also weighs.
Wednesday’s close below 1.2629 (Fibo 76.4% of 1.2397/1.3381) generated fresh bearish signal, adding to negative outlook, as daily studies maintain strong bearish momentum.
Strong bids at 1.2600 support zone may hold bears for extended consolidation, but bearish bias will remain intact while the price holds below falling 10SMA (1.2674). Break above 10SMA would provide temporary relief, but stronger bullish signal that would sideline bears, can be expected on lift above 1.2747 ( recovery high, posted on Monday).
Sustained break below 1.2605 support would signal continuation of larger downtrend and expose Fibo support at 1.2508 (Fibo 76.4% of 1.1930/1.4376), with extension towards 1.2397 (2019 low), not ruled out.
Res: 1.2640, 1.2658, 1.2674, 1.2707
Sup: 1.2605, 1.2588, 1.2508, 1.2476
