Thursday’s shooting star and stronger dollar weigh on sterling
Cable accelerated lower in early Friday, driven by fading risk appetite and stronger dollar.
Five-day rally 1.3823 (Apr 22 trough) showed signs of stall and Thursday’s action formed a shooting star candle, while today’s weakness added to signals of reversal on daily chart.
Narrowing daily cloud twists next Tuesday (1.3878) and also attracts fresh bears which pressure 1.3900 support (50% retracement of 1.3823/1.3976), with weekly close below here further weaken near-term structure and risk deeper drop towards 1.3877 (55DMA) and 1.3860 higher base.
Fading bullish momentum on daily chart contributes to negative signals.
Res: 1.3912; 1.3958; 1.3976; 1.4000
Sup: 1.3900; 1.3877; 1.3860; 1.3846