Cable continues to head north on Wednesday and extends previous day’s strong rally. Fresh advance broke through pivots at 1.3405 (20SMA) and 1.3410 (50% retracement of 1.3617/1.3204).
Bulls are supported by stronger Euro and soft-Brexit hopes, with 5/10SMA underpinning the advance.
Break above 20SMA opens targets at 1.3459 (Fibo 61.8%) and 1.3480 (falling 30SMA).
On the other side, bulls may show signs of fatigue as momentum is losing traction and slow stochastic turns sideways at the boundary of overbought territory, while falling daily Kijun-sen caps the rally for now.
Consolidation should hold above solid supports at 1.3362/51 zone (broken Fibo 38.2% of 1.3617/1.3204 / rising 5SMA) to keep bullish bias intact.
Res: 1.3429, 1.3459, 1.3482, 1.3520
Sup: 1.3384, 1.3362, 1.3351, 1.3302
