We have plotted Fib retracement from Brexit day high and post Brexit low (1.5019-1.2083) and from September high to post Brexit low (1.3445-1.2083).
Note that I am not in favor of plotting retracement on the flash crash low since the exact low is still disputable.
The descending trend line has been breached following the hawkish BOE. Furthermore, the offered tone around USD could remain intact given the drop in the US ISM non-manufacturing employment sub index has triggered speculation of a dismal non-farm payrolls print.
The area around 1.2404 (23.6% of 1.3445-1.2083) is likely to act as a strong support. On the higher side, a major hurdle is seen at 1.2603 (38.2% of 1.3445-1.2083). Above that a confluence of 23.6% of 1.5019-1.2083 and 50-DMA is seen around 1.2790.
Note that I am not in favor of plotting retracement on the flash crash low since the exact low is still disputable.
The descending trend line has been breached following the hawkish BOE. Furthermore, the offered tone around USD could remain intact given the drop in the US ISM non-manufacturing employment sub index has triggered speculation of a dismal non-farm payrolls print.
The area around 1.2404 (23.6% of 1.3445-1.2083) is likely to act as a strong support. On the higher side, a major hurdle is seen at 1.2603 (38.2% of 1.3445-1.2083). Above that a confluence of 23.6% of 1.5019-1.2083 and 50-DMA is seen around 1.2790.
