Drop of the sterling continues. The closest actual target is dynamic support 1.2849 at the lower Bollinger band, where an upward bounce may take place (watch the black arrow).
At the same time we have to note high trending activity of ADX in favor of further sell-offs. Therefore 1.2849 is a key level: in case of break the major can steeply loose not less than another 100-200 pips.
Locally the presence of downward trending potential is also confirmed. We expect break of the local level 1.2885 and further decline in direction 1.2849.
Prevailing position of sellers can be observed on all three reviewed time-frames. Traders should go short towards 1.2849 and then track reaction of the market on this zone.
Main scenario: Decline towards 1.2849 and then towards 1.2750.
Alternative scenario: Testing of the 1.2849 level and steep upward bounce.
Shorts towards 1.2849 and 1.2750.
Seeking for probable buy signals at the 1.2849 level.