Cable posted marginally higher high at 1.2949 on Tuesday, on the second attempt above pivot at 1.2941 (Fibo 61.8% of 1.3047/1.2768 downleg), but without clear break so far.
Yesterday’s rally eased downside pressure that was building on dip to 1.2853, however, confirmation of bullish continuation requires close above initial barrier at 1.2915 (converged 20/30SMA’s and Fibo barrier at 1.2941.
Technical studies are bullishly aligned and supportive for further advance, while slow stochastic is entering overbought zone on daily chart which may slow down bulls.
Daily Tenkan-sen/10SMA mark initial support at 1.2890, holding above which will keep in play positive near-term outlook.
Firm break above 1.2940/50 zone would open way towards 1.2981 (Fibo 76.4%) and psychological 1.3000 barrier.
However, the pair has been recently driven mainly by politics and focus is on UK election on Thursday, results of which will give clearer direction signals.
Res: 1.2949, 1.2981, 1.3014, 1.3047
Sup: 1.2890, 1.2853, 1.2829, 1.2800
