Cable is consolidating above psychological 1.30 barrier on Thursday, following previous day’s 1.1% rally, the biggest one-day gains, after the EU offered Britain post-Brexit partnership.
The pound advanced on easing concerns about hard Brexit, signaling continuation of recovery rally from 1.2661 (15 Aug low).
Wednesday’s break and close above 1.30 barrier (also Fibo 61.8% of 1.3213/1.2661 bear-leg) was bullish signal, with bulls eyeing barrier at 1.3057 (55SMA) and capable of travelling to 1.3142 (base of descending and thinning daily cloud) on strong bullish sentiment.
Very strong bullish momentum supports the action, but slow stochastic enters overbought territory, warning that corrective action could be anticipated in the near-term. Broken 1.30 barrier acts as immediate support, with extended dips expected to find footstep at 1.2940 zone (broken 30SMA/previous recovery high of 22 Aug).
Res: 1.3043, 1.3057, 1.3083, 1.3142
Sup: 1.3000, 1.2940, 1.2882, 1.2845
