Cable is holding within narrow consolidation in early Friday’s trading following 0.8% advance on Thursday, after announcement that the UK and EU agreed on a draft of agreement on post-Brexit era.
Strong rally spiked to 1.2927 but failed to close above cracked pivots at 1.2895 (Fibo 38.2% of 1.3174/1.2722) and 1.2905 (20SMA) and lacked stronger bullish signal for now.
Firm tone after Thursday’s rally exists but negative momentum studies warn of fresh easing.
Improved sentiment favors dip-buying strategy as Thursday’s long bullish candle underpins and next week’s twist of daily cloud expected to further attract. Broken 10SMA (1.2857) holds easing for now, followed by broken 5SMA (1.2830), which should contain dips and keep positive near-term outlook in play.
Higher base at 1.2767/64 (Thu/Wed lows) marks key support, loss of which would neutralize bulls.
Res: 1.2895, 1.2905, 1.2936, 1.2948
Sup: 1.2848, 1.2830, 1.2764, 1.2722
