Cable extends fresh bullish mode into second day, lifted by post-NFP profit-taking on dollar’s long positions, as well as news on a battle for Britain’s fourth largest supermarket group Morrisons.
The sentiment is additionally boosted by expectations that the UK government may completely lift restrictive measures on July 19 Improving daily studies support the action as 14-d momentum turned north after forming bullish divergence and stochastic is rallying higher after reversal from oversold territory.
Fresh bulls broke above Fibo 38.2% of 1.4001/1.3731 bear-leg, with daily close above here to generate initial reversal signal, which would be verified on sustained break above 10DMA (1.3869). Solid support at 1.3800 zone (converging 10/20 period MA’s on 4-hr chart) needs to hold dips and keep bulls in play.
Res: 1.3869, 1.3897, 1.3937, 1.3948.
Sup: 1.3818, 1.3800, 1.3786, 1.3731.
