Action this month has been anything but encouraging for the bulls. We failed to hold above head and shoulder neckline as well as 1.3363, in a way marking a failure to re-enter formation.
Hence, we are heading into the next week’s BOE rate decision on a weak footing. Area between 1.3363-1.3440 is a tough nut to crack. Rejection again at these levels is likely to result in a drop to 1.29 handle.
Going by monthly chart, 1.2459 (61.8% Fibo expansion) is a next major support if 1.2789 is breached.
Only a monthly closing well above 1.3440 could convince me the has run its course.