Sterling extends weakness after downbeat UK data

On Jul 2, 2019

Cable remains in red on Tuesday and extends weakness after Monday’s fall on downbeat UK Manufacturing PMI (June 48.0 vs 49.2 f/c) and close below three-day congestion that generated bearish signal.
Sterling came under fresh pressure from much weaker than expected UK construction PMI data (June 43.1 vs 49.3 f/c) that marks the weakest result since April 2009.
Fresh bears cracked key Fibo support at 1.2612 (61.8% of 1.2505/1.2783 upleg), with firm break here to confirm reversal and unmask key support at 1.2505 (18 June low, the lowest since 3 Jan).
Daily MA’s are in bearish setup and momentum is negative that supports scenario, however, oversold stochastic may slow bears.
Cluster of converged MA’s at 1.2661/81 zone is expected to cap extended upticks and maintain bearish bias.

Res: 1.2647; 1.2661; 1.2681; 1.2705
Sup: 1.2612; 1.2571; 1.2542; 1.2505