Cable remain bid in early Thursday’s trading and pressuring again 1.32 barrier after action in Wednesday failed to break higher. Britain’s parliament passed a Brexit delay law on Wednesday that will give government an extra time to eventually find workable solution, but would also keep all scenarios, including elections, open. The pair holds in green for the fourth straight day, supported by improved sentiment, however, conflicting technical indicators (negative momentum/bullish MA’s) lack clearer direction signal and keep near-term outlook in neutral mode. Bulls are supported by thick and rising daily cloud but need daily close above converged 20/30SMA’s (1.3166) to generate bullish signal for extension towards next targets at 1.3226 (Fibo 61.8% of 1.3381/1.2977) and 1.3249 (base of thick weekly cloud). North-turning 10SMA marks initial support at 1.3141, which needs to hold and keep bulls intact. Break lower would soften near-term structure, while return and close below 55SMA (1.3088) would signal reversal.
Res: 1.3200, 1.3226, 1.3249, 1.3269
Sup: 1.3166, 1.3141, 1.3121, 1.3088
