Cable remains in steep descend which extended into fifth straight day and broke below key supports at 1.4000/1.3965 (psychological support / Fibo 61.8% of 1.3711/1.4376 / 05 Apr trough) on fresh bearish acceleration on Monday.
Sterling maintains strong bearish sentiment on fading hopes about BoE rate hike next month, following downbeat key UK data (wages, CPI, retail sales) and dovish comments from BoE’s chief Carney last week.
Bears pressure next supports at 1.3931/01 (thin daily cloud) which is seen as not strong obstacle.
Close below 1.3965 would generate bearish signal for extension through daily cloud towards 1.3868 (Fibo 76.4% of 1.3711/1.4376 ascend) and 1.3850 (rising 100SMA).
Slow stochastic is in deeply oversold territory on daily chart but continues to trend lower, suggesting bears remain uninterrupted for now, but may take a breather soon.
Broken 1.40 support is reinforced by 55SMA and marks initial barrier, guarding 1.41 zone (broken bull-channel support line / broken 30SMA).
Res: 1.4008, 1.4030, 1.4094, 1.4103
Sup: 1.3931, 1.3901, 1.3868, 1.3850
