Cable rose to the highest in almost three years on Tuesday, as massive bitcoin buying by Tesla company boosted risk appetite and lifted risk-sensitive pound, while safe-haven dollar was further deflated.
Fresh advance broke above former 2021 high at 1.3758 (Jan 27), signaling continuation of recovery from 2020 low (1.1409) which paused at 1.37 zone for a couple of weeks.
Sterling was also boosted by last week’s signal from the Bank of England that zero rates won’t be on agenda for at least six months that improved sentiment.
Bulls pressure 1.38 barrier, break of which would expose Fibo projections (1.3832, 1.3877 and 1.3905) en-route towards psychological 1.40 resistance.
Weekly close above 1.3758 is needed to confirm fresh bulls, underpinned by bullish daily technical studies. Rising 10 DMA (1.3700) is expected to contain dips and keep bulls intact.
Res: 1.3800; 1.3832; 1.3877; 1.3905
Sup: 1.3758; 1.3734; 1.3700; 1.3679
