Cable extends recovery on Wednesday and probes through important barrier at 1.4205 (Fibo 61.8% of 1.4344/1.3979 pullback).
Strong downside rejection at key 1.40 support zone on Tuesday signaled that corrective phase from 1.4344 peak might be over.
Bulls are underpinned by rising 10SMA (currently at 1.4063) and will remain in play while the latter holds.
Sustained break above 1.4205 Fibo barrier would open 1.4286 (26 Jan lower top) and could lead for extension above 1.4300 barrier.
Conversely, renewed probes below 10SMA would soften near-term structure, while firm break below 1.40 support (Fibo 38.2% of 1.3457/1.4344 upleg) would signal deeper correction from 1.4344 (25 Jan peak, the highest since 24 June 2016 Brexit vote).
Res: 1.4212, 1.4286, 1.4344, 1.4400
Sup: 1.4135, 1.4063, 1.4048, 1.4000
. Strong downside rejection at key 1.40 support zone on Tuesday signaled that corrective phase from 1.4344 peak might be over.){kind=link}