Cable holds in green for the fourth straight day, as softer dollar maintains pound’s positive near-term tone for extension of recovery from 1.2661 (15 Aug low).
Today’s rally broke above former bear-channel support line and pressures pivotal barrier at 1.2857 (Fibo 38.2% of 1.3173/1.2661 bear-leg), break of which would generate fresh bullish signal.
Momentum made bull-cross with its 7SMA and heads north, supporting scenario along with RSI which reversed from oversold territory.
Close above 1.2857 would signal extension towards 1.2920 (falling 20SMA) and 1.2977 (Fibo 61.8%).
Meanwhile, the pair may hold in extended consolidation, with pivotal support at 1.2774 (10SMA) expected to keep the downside protected.
Res: 1.2857, 1.2920, 1.2977, 1.2995
Sup: 1.2800, 1.2774, 1.2729, 1.2697
