Political turmoil keeps bears in play; upticks seen as positioning for fresh downside

Cable bounces above 1.25 handle in early European trading on Wednesday, as bears are taking a breather after steep three-day fall which hit new 20-month low at 1.2476.
Sterling remains under strong pressure on political turmoil after PM May postponed parliamentary vote on Brexit deal and rising concerns over no deal Brexit.
Bearish studies on daily and weekly chart support negative scenario for further weakness and test of 1.2365 (Apr 2017 trough) and possible extension towards 1.20 zone after bears took out Fibo support at 1.2508 (76.4% of 1.1930/1.4376).
Upticks are expected to provide fresh selling opportunities and should be ideally capped under 1.2638/58 (Tuesday’s spike high / daily Tenkan-sen / 4 Dec low).

Res: 1.2549; 1.2619; 1.2638; 1.2661
Sup: 1.2476; 1.2418; 1.2365; 1.2268