Cable maintains firm tone and extends rally from bear-trap on 1.4049 Fibo support into third straight day.
Fresh bullish acceleration in early Tuesday was boosted by weaker dollar and better than expected UK labor data, as easing, lockdown boosts hopes for faster economic recovery and improves the sentiment.
Sterling rose to the highest in nearly three months, on track to fully retrace 1.4238/1.3669 correction and signal continuation of larger uptrend from 1.1409 (Mar 2020 low) that would expose 2018 peak at 1.4376.
Bullish daily studies support the action with dip buying (ideally above 1.41 handle) favored.
Rising 10DMA marks pivotal support (1.4053) while loss of key 1.40 support zone is needed to neutralize bulls.
Res: 1.4200, 1.4238, 1.4265, 1.4300.
Sup: 1.4166, 1.4100, 1.4053, 1.4020.
