Bears hold grip and look for a signal of bearish continuation

GBPUSD remains at the back foot on Wednesday and holding just above new 11-week low at 1.2527, posted on Tuesday after 0.5% daily drop, which completed bearish engulfing pattern on daily chart, adding to negative near-term signals.

Bear-leg off 1.2746 (Aug 30 lower top) is attempting to complete a failure swing pattern on daily chart, to signal continuation of larger downtrend from 1.3141 (2023 high, posted on July 13) towards initial target at 1.2504 (Fibo 76.4% of 1.2307/1.3141) and 200DMA (1.2423) in extension).

Daily MA’s in predominantly bearish configuration and 14-d momentum sliding deep in the negative territory, contribute to bearish near-term outlook.

Sterling received a mild support from slightly better than expected UK Aug construction PMI, awaiting fresh signals from the speech of BoE Governor Bailey and US Aug non-Manufacturing PMI, which may deflate pound on better than expected Aug numbers.

Res: 1.2587; 1.2626; 1.2665; 1.2724
Sup: 1.2527; 1.2504; 1.2423; 1.2368