Cable is consolidating under new 34-month high (1.3866) posted on Wednesday after soft US CPI data deflated dollar and boost riskier pound.
Fresh bulls that emerged from Feb 2 strong downside rejection and bear-trap formation, remain in play but are likely to pause.
Holiday-lowered volumes and headwinds that bulls face from solid offers at 1.3900 zone may keep the pair in extended consolidation, before resuming higher.
Psychological 1.40 barrier came in focus, with more significant levels, such as monthly cloud top (1.4090) and falling 100MMA (1.4138) to be challenged on break of 1.40 pivot.
Bullish structure is expected to remain intact while the price action stays above 1.3758/28 (January’s high/rising 10DMA), while break here would put bulls on hold for deeper pullback. Rising 20DMA (1.3697), 30DMA (1.3668) and broken Fibo 38.2% of 1.7189/1.1409 (1.3617) mark next important supports, with extended dips to stay above 1.3617 and keep larger bulls in play.
Res: 1.3866, 1.3900, 1.3951, 1.4000
Sup: 1.3800, 1.3758, 1.3728, 1.3697
