Cable remains in red on Friday and probed below thin daily cloud after fresh weakness eventually broke below strong supports at 1.3145/43 (Fibo 61.8% of 1.3026/1.3337/55SMA) which limited downside attempts in past two days. Fresh weakness hit new 10-day low at 1.3087, with bearish studies favoring further downside and close below 55SMA needed to confirm. Pound is under pressure from stronger dollar, as well as concerns about Brexit and doubts whether BoE will hike interest rates on Nov 2. Recent comments from BoE officials also weigh on pound as BoE’s Deputy Governor Cunliffe in his speech on Thursday, gave no clear signals about rate hike soon, adding to dovish steer seen on the speech of new deputy governor Ramsden earlier this week. Bears may extend towards key supports at 1.3045 (100SMA) and 1.3026 (05 Oct low), as near-term action remains pressured by thick 4-hr cloud (spanned between 1.3182 and 1.3260). Broken 55SMA marks initial resistance at 1.3143.
Res: 1.3143, 1.3161, 1.3182, 1.3204
Sup: 1.3087, 1.3045, 1.3026, 1.3000
