Sterling inched higher on consolidative action after yesterday’s weakness that posted fresh 31-year low at 1.3118. Near-term price action moves around 1.3300 handle, after posting session high at 1.3369.
No signs so far of stronger upside action that may violate first pivots at 1.3480/1.3500 (yesterday’s post gap-lower highs / hourly double top / former critical support), to look for filling yesterday’s gap and signal stronger recovery.
Overall sentiment remains very bearish and favors further weakness that would look for the next target at 1.3000, however, caution is required as daily studies are overextended and bullish signal could be expected in the near term.
Limited upside action is seen for now, but extension higher on break above initial 1.3480 resistance, cannot be ruled out. Next resistance lies at 1.3550, followed by 1.3650 (Fibo 61.8% of 1.3977/1.3118 downleg), which guards key near-term barrier at 1.3977 (last Friday’s recovery rejection).
Res: 1.3369; 1.3480; 1.3550; 1.3650
Sup: 1.3258; 1.3225; 1.3118; 1.3000

, Daily Market Outlook