Cable extends weakness for the third straight day and probes through pivotal support at 1.2530 (Fibo 38.2% of 1.2074/1.2813, pressuring 20DMA (1.2503) which previously contained pullback from 1.2813 (10 June high).
Fading bullish momentum and south-heading RSI add to negative near-term bias, but bears need firm break below 20DMA and 1.2454 (correction low posted on 15 June) to signal deeper pullback.
Markets await news from today’s key event for pound / BoE policy meeting, which is likely to boost volatility.
The central bank is expected to keep rates unchanged and to further increase its bond-buying program that could be supportive for sterling, however talks of negative rates may limit gains.
Initial pivot lays at 1.2625 (10DMA), followed by 200DMA (1.2683) break of which is needed to bring bulls fully in play.
Res: 1.2530, 1.2566, 1.2625, 1.2683
Sup: 1.2503, 1.2454, 1.2443, 1.2417
