Risk aversion pushes cable below 1.32 handle to pressure key supports

Cable fell below 1.32 mark in Europe on Monday, deflated by fresh risk aversion on surge of Omicron cases and fears that tougher measures can be imposed during the Christmas / New Year holiday, to curb the virus spread and prevent worse scenarios.
The pair’s price fell close to the new low posted on Dec 8 after the UK announced new measures against Covid, with possibility of further tightening of restrictions, which officials so far did not confirm but also did not rule out.
Weakened sentiment and daily studies in full bearish setup weigh on sterling, as bears pressure pivotal supports at 1.3160 zone (Fibo 38.2% of 1.1409/1.4249 / Dec 8 low / 200WMA), break of which would further weaken the structure and signal a continuation of the downtrend from 1.4249 (2021 high, posted on June 1).

Res: 1.3245; 1.3267; 1.3300; 1.3337
Sup: 1.3164; 1.3143; 1.3106; 1.3000