Cable hit new low at 1.2773 on Thursday, in extension of strong fall in past two days that eventually broke below daily cloud and took out another strong support at 1.2811 (12 July trough), generating strong bearish signal for continuation of the downtrend from 1.3268 (03 Aug peak). Bearish studies maintain negative near-term outlook for extension towards next target at 1.2749 (Fibo 76.4% of 1.2588/1.3268), with 200SMA (1.2649) expected to come in focus on stronger bearish acceleration. Formation of 10/100SMA bear-cross (1.2883) adds on existing bearish pressure, with broken daily cloud base now acting as strong resistance (spanned between1.2857/1.2912). Broken cloud base offers initial resistance at 1.2857, followed by 10/100SMA bear-cross (1.2883) and falling Tenkan-sen at 1.2897. Only acceleration above daily cloud would sideline bearish pressure and signal correction. UK data are in focus today, with Q2 GDP expected to come in line with previous releases (0.3% q/q, 1.7% y/y), while business investments are expected at 0.4% vs 0.6% in Q1. Weaker releases could further hurt already weak pound, while stronger than expected releases would inflate sterling.
Res: 1.2813, 1.2833, 1.2857, 1.2883
Sup: 1.2773, 1.2749, 1.2715, 1.2649
