Cable eased to 1.2900 zone in early Monday, after peaking at 1.2963 on Friday (the highest since 30 Sep 2016) but holds strong bullish stance that resulted in the third straight bullish week and made the strongest monthly gains after Brexit vote. Comments released on Sunday showed the first stronger verbal clash between EU officials and British PM, signaling tough divorce negotiations. Sterling is maintaining strong bullish sentiment, accompanied with firmly bullish technicals, eyeing psychological 1.3000 barrier after former peak at 1.2904 was taken out. However, further corrective easing could be sparked by overbought daily RSI/slow stochastic. Below 1.2900 handle, hourly cloud (spanned between 1.2894 and 1.2876) marks next good support, underpinned by daily Tenkan-sen in steep ascend (currently at 1.2859). Break here would signal stronger correction towards 1.2834 (Fibo 61.8% of 1.2755/1.2963 upleg) and round-figure 1.2800 support. Key supports lay at 1.2700/55 (low of recent consolidation), loss of which would generate stronger bearish signal.
Res: 1.2943, 1.2963, 1.3000, 1.3055
Sup: 1.2900, 1.2876, 1.2859, 1.2821
