Cable rallied to new 10-week high at 1.3138 in Asia on Friday, following newspaper’s report that Ireland is preparing to back PM May’s plan B.
Revived hopes that UK might avoid no-deal Brexit boosted pound for eventual break above falling 200SMA, which capped the advance in past two sessions.
Fresh bulls require weekly close above 200SMA to neutralize the risk of stall, signaled by Thursday’s Doji candle and overbought daily studies.
Bulls pressure immediate barriers at 1.3153 (Fibo 38.2% of larger 1.4376/1.2397 fall) and 1.3174 (7 Nov high) break of which would spark further bullish acceleration towards 1.3368 (Fibo 50%).
Dip-buying remains favored scenario, with broken 1.30 barrier and rising 10 SMA (1.2952) expected to contain dips and maintain bullish bias.
The pair is on track for the biggest weekly gains since mid-March 2018 and also the sixth straight bullish weekly close that supports the notion.
Res: 1.3138, 1.3149, 1.3174, 1.3257
Sup: 1.3070, 1.3058, 1.3000, 1.2953
