Cable rallied in early Tuesday’s trading and hit new two-week high at 1.3085, on rising optimism for Brexit deal, after media report showed that the EU is preparing to offer compromise proposal on Irish border, which proved to be the major obstacle on Brexit negotiations.
Fresh strength pressures daily cloud top (1.3095) after eventual break above strong Fibo barrier at 1.3043 (61.8% of 1.3257/1.2695), where upside attempts in past three days were repeatedly rejected.
Monday’s long-tailed daily candle signaled strong downside rejection at daily cloud base (dented on Friday’s close below) and signaled an end of brief consolidation, returning near-term picture into full bullish mode on return above a cluster of daily MA’s at 1.2996/1.3037 zone.
Strong bullish signals could be expected on close above 1.3043 Fibo barrier and above daily cloud top, which would open way for further advance.
Broken Fibo barrier and session low mark initial supports at 1.3043/33, followed by converged 30/55SMA’s (1.3017/12) and psychological 1.30 support (reinforced by 20SMA), which guard lower pivot at 1.2980 (daily cloud base).
Res: 1.3095, 1.3125, 1.3192, 1.3235
Sup: 1.3043, 1.3017, 1.3000, 1.2980
