Cable is consolidating within widening daily cloud following strong rally on Wednesday (the biggest one-day rally since 15 Sep) which cracked cloud top but failed close above it. Technical studies are turning into bullish setup with fresh bullish sentiment, boosted by strong UK GDP data yesterday, keeping near-term focus at the upside. Break above cloud top (1.3294) will be strong bullish signal for acceleration above 1.33 and test of next strong barrier at 1.3337(13 Oct high). Daily cloud base (1.3214), reinforced by converged 10/20SMA’s, offers solid support which is expected to hold dips. Cable is eyeing the outcome of ECB’s meeting and could follow the Euro after central bank’s releases its decision about QE program.
Res: 1.3278, 1.3294, 1.3311, 1.3337
Sup: 1.3229, 1.3214, 1.3182, 1.3159
