Bears extend to new 28-mth low as fears of no-deal Brexit scenario maintain pressure
Cable remains firmly in red and fell to new 28-month low in early Monday’s trading, following bearish signal from Friday’s marginal close below former low at 1.2382 (17 July).
Fears of no-deal Brexit under new PM Boris Johnson remain main driver of pound and maintain pressure, while strengthening dollar, additionally boosted by solid US GDP data, is retesting last Friday’s two-month high and adds to pound’s negative outlook.
Bearish studies on daily/weekly chart and last week’s close below former 2019 low (1.2397), signal further weakness, as the way towards 1.2108 (14 Mar 2017 trough) is clear.
Initial resistance lays at 1.2382, followed by falling 10DMA (1.2445) and 1.2479, bear-trendline from 1.2783 (25 June high) which maintained the downtrend and expected to cap extended corrective upticks.
Res: 1.2382; 1.2417; 1.2445; 1.2479
Sup: 1.2315; 1.2274; 1.2208; 1.2141