Cable fell to fresh three-week low at 1.3173 after eventual break below near-term base at 1.3220, reinforced by rising 30SMA, where the price action was contained in past two days.
Fresh acceleration lower signals resumption of bear-leg from 1.3655 (20 Sep peak) which eyes next strong supports at 1.3128/10 (rising 55SMA / Fibo 61.8% of 1.2773/1.3655 rally) and could expose psychological 1.30 support, reinforced by 100SMA.
Bearishly aligned techs (10/20 SMA bear cross was formed today and increases downside pressure) support further weakness, along with political concerns over possible exit of PM May which would increase risk of early election in 2018/19, also heavily weighing on pound.
With no significant releases from the UK today, politics and speeches from BoE MPC members are seen as main internal driver for the pound. Series of US data and speakers will be the key external factors that could affect the pound on Thursday.
Res: 1.3220, 1.3250, 1.3291, 1.3353
Sup: 1.3173, 1.3148, 1.3128, 1.3110
