Cable remains constructive on Thursday and holding above broken Fibo barrier at 1.3047 (Fibo 61.7% of 1.3217/1.2772) but Wednesday’s Doji with long shadows which formed spinning top, signaled indecision and warns about possible reversal. Strong three-day recovery rally probed above 1.31 barrier and peaked at 1.3109 on Wednesday, but was unable to hold gains. Repeated close above Fibo barrier was positive signal, which could help if the pair manages to remain above. Daily MA’s are in full bullish setup and continue to underpin, as broken 200SMA contained Wednesday’s dips. Daily momentum attacks the centerline in attempts to break into positive territory and further support the advance. On the other side, strongly overbought slow stochastic turned sideways, long with daily RSI, conflicting initial positive signals. Bullish scenario requires holding above broken 1.3047 barrier and extension above 1.3112 (Fibo 76.4% of 1.3217/1.2772) to confirm bullish continuation. Conversely, loss of 1.3047 handle would weaken near-term structure, with extension and close below 200SMA (1.3002) to generate initial reversal signal.
Res: 1.3087, 1.3112, 1.3160, 1.3217
Sup: 1.3047, 1.3026, 1.3002, 1.2995
