The cross slumped in Europe on Thursday and hit three week low near 148.00 handle, as rising political concerns over PM May’s position hit pound across the board.
Bears are looking for target at 147.67 (Fibo 38.2% of 139.30/152.85 rally) and could move further down on extension of current third wave of five-wave sequence from 152.85, towards its FE 138.2% at 147.03.
Meanwhile, bears may take a breather ahead of 147.67 target as near-term studies are oversold.
Broken 20SMA now acts as good resistance at 149.17 and should ideally cap corrective rallies.
Res: 148.70; 149.17; 149.45; 150.00
Sup: 148.00; 147.67; 146.51; 147.03
