More bearish tones are expected in cable
Sellers managed to break the lower trendline that helped to limit declines in overnight trading and that has set off further bearish tones in the pair currently. As the dollar looks to break out, the pair looks set to post its seventh consecutive daily loss when the day closes today.
Right now, the lows remain capped by the 1.2774 support level from the August 2017 low.
Beyond that, historical price levels don't really point to any significant support levels until we near 1.2700 and if you really want to nit-pick then there is some support near 1.2675 before a the 1.2600 figure level is observed.
As I've mentioned previously throughout the week, the momentum remains with the sellers still. Near-term chart also suggests a similar case and until there is a shift in the near-term bias then there is not much else to suggest a sustained rebound in the pair for the time being.
The next key risk event coming up will be the UK Q2 preliminary GDP report at 0830 GMT. That should add some spice depending on the data beats/misses. But given the dollar's momentum, any rallies in the pair will likely be sold as the market will start to shift their attention towards Q3 growth in the UK and Brexit developments (both of which still presents some degree of uncertainty).
