Cable stands at the front foot in early Wednesday’s trading, supported by Tuesday’s bullish engulfing and eased Brexit concerns.
Extension of Tuesday’s rally cracked technical barriers at 1.3160/73 (50% of 1.3362/1.2957/20SMA) but without clear break so far.
Flat momentum and mixed setup of daily MA’s keeps the pair without clear direction.
Sustained break above 20SMA and Fibo barrier at 1.3208 (61.8%) is needed for bullish signal for extension towards 1.3300 zone targets (falling 55SMA/16 July high/falling daily cloud base).
Bearish scenario requires break below 10SMA (initial support at 1.3139) and extension below Tuesday’s low (1.3071) to expose psychological 1.30 support and key point at 1.2927 (19 July low) in extension.
Res: 1.3173, 1.3190, 1.3292, 1.3327
Sup: 1.3139, 1.3102, 1.3071, 1.3049
