Cycles & Levels: The weekly bearish reversal candle is a setback that places the focus back down again. The recent sell-off in the Sterling occurs in line with a developing down-cycle. On the hourly, Monday’s weak opening validates the creation of a new down-cycle, which now ups the odds for any recovery to find growing selling interest towards the immediate resistance areas at 1.2955, 1.2990/1.30 and 1.3038 (all set to provide significant liquidity).
Correlations & Volumes: The correlation values are heading south, hence supporting further falls in the price. The volume has been reduced on the way down, but we are far from a decision level on the daily, which makes the reading of volumes less significant. The highest accumulation of volume (POC) occurred circa 1.3020, which adds to the levels of intraday resistances highlighted above.