Cable is consolidating around 1.2800 handle in early Wednesday’s trading after strong rally on Tuesday, dragged by rallying Euro and weaker dollar, hit target at 1.2861, provided by top of thick daily cloud.
However, near-term sentiment has improved and sidelined persisting Brexit concerns that open way for further advance.
Close above cracked pivotal barriers at 1.2828/37 (Fibo 61.8% of 1.2977/1.2588 downleg / 55SMA) is needed to confirm bullish stance for renewed attack and break above daily cloud.
Extended consolidation between 20SMA (1.2785) and 55SMA (1.2837) could be expected, with stronger dips expected to find support above 10SMA (1.2732).
Return below Tuesday’s low at 1.2715 would be seen as strong bearish signal.
Res: 1.2837, 1.2861, 1.2885, 1.2920
Sup: 1.2785, 1.2756, 1.2732, 1.2715
