Bears on hold above key 1.15 support zone as traders assess massive stimulus, but outlook remains negative
Cable is holding within narrow consolidation in early Thursday’s trading following previous day’s massive sell-off when pound lost nearly 4%.
Key 1.15 support zone (lows hit after 2016 Brexit vote) was dented on Wednesday, but bears may stay on hold for some time as traders try to assess the impact from extraordinary measures by world central banks and governments.
On the other side, strong negative sentiment continues to dominate as authorities are preparing for complete lockdown of London, as the biggest European financial center and the whole country that would prompt traders to further selling of pound for rising safe-haven US dollar.
Loss of 1.15 support zone could spark fresh bearish extension towards 1.10 zone, levels last traded in late 1984.
Session high at 1.1661marks initial resistance, ahead of former low of 3 Sep 2019 (1.1958) and psychological 1.20 barrier, which are so far out of reach.
Only regain of these levels and firm break higher would sideline bears.
Res: 1.1600; 1.1661; 1.1786; 1.1850
Sup: 1.1500; 1.1472; 1.1449; 1.1400