Cable rose above 1.35 barrier and hit new two-week high on Wednesday, in extension of Tuesday’s 1.04% rally, inflated by hopes for Brexit trade deal after the EU chief executive said there have been a progress in trade talks and next few days would be critical.
Cable did show any negative reaction on downbeat UK inflation data and remained at the front foot after mixed UK PMI figures.
Bulls have so far retraced the largest part of 1.3538/1.3134 pullback and pressure 2020 peak at 1.3538 (also the highest since May 2018).
Firm break here would spark fresh bullish acceleration and expose Fibo barrier at 1.3676 (76.4% retracement of larger 1.4376/1.1409 fall).
Daily studies remain in firm bullish setup and support the advance, however, the final result of Brexit trade talks is likely to define pound’s direction.
Session low (1.3432) marks initial support with near-term bias expected to remain with bulls while the price stays above rising 10DMA (1.3382).
Res: 1.3538, 1.3600, 1.3634, 1.3693
Sup: 1.3500, 1.3477, 1.3432, 1.3382
