Cable extends higher in early European trading on Thursday and pressures falling 30SMA (1.3467) after bullish signal was generated Wednesday’s close above pivotal 1.3401/10 barriers (20SMA/50% retracement of 1.3617/1.3204 bear leg).
Strong momentum continues to support rally, but strongly overbought slow stochastic warns of corrective action in the near-term.
Bulls need close above 30SMA to further strengthen for eventual attack at 200SMA (1.3583), violation of which would generate stronger bullish signal for reversal.
Broken 20SMA (1.3401) is expected to ideally keep the downside protected and keep bulls intact.
Res: 1.3480, 1.3520, 1.3588, 1.3617
Sup: 1.3401, 1.3384, 1.3362, 1.3337
