Cable extends a steep fall into third straight day and hit a four-week low (1.3661) on Monday. Strong risk aversion in the market lifts the dollar and depresses stocks, keeping the pound under increased pressure.
Bears extended below 1.3700 handle but faced headwinds on approach to pivotal Fibo support at 1.3647 (38.2% of 1.2675/1.4249 ascend) and also from rising thick weekly cloud (cloud top lays at 1.3698).
Daily techs in full bearish configuration support the action but oversold stochastic suggests that bears may take a breather before firmly breaking through 1.3698/1.3647 pivots.
Broken daily Kijun-sen (1.3757) marks solid resistance which should limit upticks and keep bears in play for attack at 1.3601 (Aug 20 low) and 1.3571 (July 20 low).
Res: 1.3723, 1.3747, 1.3757, 1.3787.
Sup: 1.3661, 1.3647, 1.3601, 1.3571.
