Fresh bears crack significant supports but without clear break for now
The cross falls to six-week low at 0.8904 on Monday in extension of steep fall from 0.9148 (3 Sep lower top of larger downtrend from 0.9324, 12 Aug high) driven by fresh strength of British pound.
Fresh bears emerged after Friday’s consolidation and probed below 100DMA (0.8925) to find footstep at 50% retracement of 0.8489/0.9324 ascend (0.8906).
The pair remains below the base of rising daily cloud for the third straight day, with negative signals reinforced by 10/55 and 20/30DMA bear-crosses and rising bearish momentum.
Bears need close below cracked Fibo support at 0.8906 to open way towards next significant support at 0.8840 (200DMA).
Caution of oversold daily stochastic, warning that bears may stay on hold for consolidation before fresh push lower.
Solid barriers at 0.9005/15 (broken Fibo 38.2% / falling 10DMA) are expected to cap extended upticks and keep bears in play.
Res: 0.8985; 0.9005; 0.9015; 0.9040
Sup: 0.8904; 0.8891; 0.8840; 0.8808