Cable returned to weakness in early Europe and fell below Asian session low (1.2770) after overnight recovery attempts stalled at 1.2850.
The pair remains in red following last week’s 1% fall on risk aversion, with bearish signal on fresh weekly close below 1.2919 (Fibo 38.2% of 1.1958/1.3514) adding to negative tone.
Sterling is also vulnerable on today’s start of EU/UK trade talks, widely expected to be tough.
Bearish daily techs also weigh on the pair’s near-term action which looks for renewed attempt through cracked support at 1.2736 (50% retracement of 1.1958/1.3514).
Clear break here would open way towards next significant supports at 1.2695 (200DMA) and 1.2669 (weekly cloud top).
Weaker than expected UK Manufacturing PMI (Feb 51.7 vs 51.8 f/c), although comfortably above 50 threshold (also January’s release) would add to existing pressure.
Session high (1.2850) where Asian action was strongly rejected, marks initial resistance, followed by a cluster of falling daily MA’s at 1.2875/1.2986 zone.
Res: 1.2850, 1.2875, 1.2905, 1.2919
Sup: 1.2755, 1.2736, 1.2725, 1.2695
