Cable extends weakness after dovish BoE Governor’s comments
Fresh weakness after dovish comments from BoE Governor Carney approached psychological 1.30 support on Thursday.
Cable is holding in red for the third straight day and threatens for further easing as daily studies softened and expectations of BoE rate cut on 30 Jan policy meeting rose after Carney’s remarks of prompt response from the central bank on signals of persisting weakness in the UK economy.
Break of pivotal 1.30 support zone would risk test of key supports at 1.2904 (23 Dec trough / daily cloud top).
Broken daily Tenkan-sen (1.3126) caps today’s action and expected to limit stronger upticks to keep bears in play.
Res: 1.3080; 1.3126; 1.3169; 1.3209
Sup: 1.3012; 1.3000; 1.2968; 1.2904