The rules are clear that a unit cannot go on overwatch and make a sustained fire in the same turn.
This does not say that a unit that was put on overwatch in a previous turn cannot sustain fire when triggered by enemy movement, so I am trying to clarify whether formations that are on overwatch from a previous turn can sustain fire.
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Q: Is a formation that has successfully activated an
Overwatch action subsequently able to make a sustained fire
OW attack in the same turn, (or does it have to wait until the
next turn to be able to do this)?
A: Overwatch and Sustained Fire are two different actions
that can be taken. You have to choose one or the other when
you activate the formation. You can't combine actions.
Next, a unit on overwatch may only react when a formation moves or unloads troops. Most will need line of sight to fire, but all that is required is the target formation has moved or unloaded troops. Assuming a formation was placed on overwatch in a previous turn rather than this one, this does not appear to preclude indirect firing weapons firing at units outside of their line of sight.
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1.10 OVERWATCH
A formation that takes an overwatch action may not
move, but may shoot, outside of the normal turn
sequence, in response to an enemy formation’s
movement.
A formation that is on overwatch may choose to shoot
immediately after an enemy formation completes a move
or unloads troops, and before the target either shoots or
assaults.
Also note that formations on overwatch may only react
when a formation moves or unloads troops. They may not
to choose to shoot at a formation that does anything else
in their line of fire, such as shooting without moving or
regrouping.
And finally, indirect fire weapons that aren't specifically prevented from direct firing (eg the Manticore) can still fire at targets within minimum range (30cm), but if doing so can't fire as a barrage.