Sterling surged after BoE’s governor Carney, speaking at European Central Bank conference in Portugal, said Bank of England is likely to raise interest rates as the British economy comes closer to operating at full capacity and will debate this in the coming months.
Pound eventually broke above thick daily close in fresh bullish acceleration and came close to pre-UK election high at 1.2977, posted on 08 June. Fresh bulls are also looking for retest of psychological 1.3000 barrier, after mid-May probes above were short-lived and stalled at 1.3047.
Renewed near-term bullish sentiment is reinforced technical studies which are entering full bullish setup on daily chart and supportive for further advance.
Also, close above daily cloud will be strong bullish signal.
However, hesitation on approach to strong resistance zone between 1.2977 and 1.3047 could be anticipated, with rising daily cloud expected to ideally contain.
Extended pullback should find support above converged 30/55SMA at 1.2836.
Res: 1.2977; 1.3000; 1.3047; 1.3125
Sup: 1.2900; 1.2863; 1.2836; 1.2800
