Cable cracks critical 1.20 support zone
Cable remains in steep downtrend that extends into seventh straight day and pressures critical 1.20 support zone (lows of 2016/19).
Sentiment remains very negative, as traders remain out of riskier assets, with measures that governments and central banks take, expected to give some results.
The UK government announced a 330 billion pounds aid, joining other governments in attempt to keep liquidity and cushion disastrous impact of corona virus pandemic.
This may keep sterling afloat above 1.20 zone for some time, but the outlook remains firmly bearish and according to current circumstances, limited consolidation is expected to precede fresh weakness.
Final break of 1.20 trigger would risk retest of 2016 post-Brexit vote lows at 1.15 zone and even deeper fall, if situation deteriorates.
Res: 1.2130; 1.2238; 1.2252; 1.2325
Sup: 1.2000; 1.1958; 1.1900; 1.1800