Cable fell further at the beginning of the week, after larger bears paused for consolidation on Friday.
Current bets show 60% chance of BoE rate cut at Thursday’s policy meeting, which continues to weigh on sterling.
Technical picture on daily chart weakened further after Monday’s acceleration broke below 1.2830 pivot (50% retracement of 1.2615/1.3044 / daily Kijun-sen) with daily close below here to confirm fresh negative signal.
Targets at 1.2779 (Fibo 61.8%) and 1.2741 (daily Ichimoku cloud top) are now in focus, with south-heading daily indicators showing further space for extension lower, though limited correction to be anticipated in coming sessions as stochastic is deeply oversold.
Upticks should be capped under 1.2850/70 barriers, to offer better selling opportunities.
Res: 1.2830; 1.2880; 1.2910; 1.2943.
Sup: 1.2800; 1.2779; 1.2741; 1.2716.
