Cable cracks 1.36 barrier in early Monday’s trading, maintaining positive stance following last Friday’s jump on well below expectations US non-farm payrolls data.
Bullish setup of daily MA’s underpins the action, along with positive signal generated on Friday’s close above pivotal double-Fibo barriers at 1.3575/77 (38.2% of 1.4249/1.3161 descend and 61.8% retracement of 1.3834/1.3161 downleg), which looks for confirmation on repeated daily close above these levels.
Sustained break above 1.36 zone (round-figure / Nov 9 high) would open way towards 1.3675 (Fibo 76.4% of 1.3834/1.3161) and possibly unmask 200DMA (1.3736).
Weaker bullish momentum and stochastic entering overbought territory on daily chart, warn that bulls might be losing steam and consolidation may precede fresh push higher.
Initial support lays at 1.3553 (5/100DMA bull-cross) with extended dips to remain above broken daily cloud top (1.3514) to keep bulls intact.
Res: 1.3607; 1.3675; 1.3700; 1.3736
Sup: 1.3575; 1.3553; 1.3514; 1.3490
