Sterling came under strong pressure again, after recovery attempts from fresh 31-year low at 1.3225 were capped under psychological 1.4000 barrier. Subsequent easing accelerated lower on Monday’s gap-lower opening, with hourly double-top left at 1.3480 zone, ahead of fresh bearish acceleration which again pressures 1.3225 support.
Friday’s massive fall of almost 18 figures and long red daily / weekly candles, generated very strong bearish signals for resumption of sharp fall from 1.5000 zone, which was interrupted by short-lived consolidative phase, as the pair is looking for very strong bearish close, last time seen in Aug 2008.
Break below 1.3225 handle would open next target at 1.3104 (Fibo 161.8% projection of downleg from1.5015 peak), with focus at psychological 1.3000 support.
Hourly double-top at 1.3480 (just ahead of former critical support at 1.3500) marks initial and strong resistance, which so far capped near-term action. Next barriers lay at 1.3640 and 1.3825, ahead of key near-term resistances at 1.3977 /1.4000 (Friday’s correction peak / psychological barrier.

Res: 1.3352; 1.3480; 1.3640; 1.3825
Sup: 1.3225; 1.3104; 1.3000; 1.2900

, Daily Market Outlook