Bears regained control after short-lived recovery; weaker than expected UK PMI data also weigh

Cable returned to weakness in early Europe and fell below Asian session low (1.2770) after overnight recovery attempts stalled at 1.2850.
The pair remains in red following last week’s 1% fall on risk aversion, with bearish  signal on fresh weekly close below 1.2919 (Fibo 38.2% of 1.1958/1.3514) adding to negative tone.
Sterling is also vulnerable on today’s start of EU/UK trade talks, widely expected to be tough.
Bearish daily techs also weigh on the pair’s near-term action which looks for renewed attempt through cracked support at 1.2736 (50% retracement of 1.1958/1.3514).
Clear break here would open way towards next significant supports at 1.2695 (200DMA) and 1.2669 (weekly cloud top).
Weaker than expected UK Manufacturing PMI (Feb 51.7 vs 51.8 f/c), although comfortably above 50 threshold (also January’s release) would add to existing pressure.
Session high (1.2850) where Asian action was strongly rejected, marks initial resistance, followed by a cluster of falling daily MA’s at 1.2875/1.2986 zone.

Res: 1.2850; 1.2875; 1.2905; 1.2919
Sup: 1.2755; 1.2736; 1.2725; 1.2695