Cable turns south on dovish comments from BoE policymaker
Cable lost traction on Tuesday and fell to four-day low, following repeated failure to sustain break above key 1.36 barrier (Fibo 61.8% of 1.3748/1.3357 descend).
Near-term sentiment softened on renewed tensions over Ukraine and relatively dovish comments from BoE Hawk Ramsden, who said that some further modest tightening is likely to be appropriate, deflating expectations for more aggressive action from BoE after he asked for 0.5% hike on Feb 3 policy meeting as the only internal MPC member.
Fresh dip weakens near-term structure and pressuring pivotal supports at 1.3539/33 (daily cloud top / Fibo 38.2% of 1.3357/1.3642 upleg), with firm break here to further soften the tone and risk drop towards next strong supports at 1.3500 zone (100DMA / 50% retracement of 1.3357/1.3642).
South-heading 14-d momentum on daily chart is breaking into negative territory and support fresh bears, but the action might be slowed or even contained by the top of relatively thick daily cloud.
Res: 1.3564; 1.3600; 1.3615; 1.3642
Sup: 1.3533; 1.3509; 1.3500; 1.3486