Cable fell to 14-month low on Thursday morning, as steep bear-leg off 1.2575 lower top extends into third straight day.
Strengthening dollar, crisis about Britain’s fiscal outlook and uncertainty over Trump’s tariff plan, were the key contributors to pound’s latest weakness.
Bearish technical picture on daily chart, as well as a number of weekly MA bear-crosses, add to negative near term outlook, with break below former low at 1.2299 (Apr 21) also generating a negative signal.
Bears eye targets at 1.2050 zone (Oct 2023 higher base) and psychological 1.2000 support, with limited corrective actions likely to precede fresh push lower.
Initial barrier lays at 1.2360 zone (broken Fibo 76.4% support) with extended upticks to stall under 1.2500 zone (former base / round figure) and offer better selling levels.
Res: 1.2360; 1.2400; 1.2455; 1.2500.
Sup: 1.2238; 1.2186; 1.2050; 1.2000.
