Cable is maintaining positive tone at the beginning of the week and holding firmly above psychological 1.2500 support (also daily Ichimoku cloud top, reinforced by rising Tenkan-sen line).
The pair posted fresh marginally higher recovery high at 1.2553 on Monday, after Friday’s strong rally, with strong bullish sentiment being underpinned by the third consecutive bullish week.
Near-term action is in consolidation mode within 1.2511/53 range and fresh upside attempts could be expected while 1.2500 support is holding.
Daily studies in firm bullish setup support scenario for final push towards key near-term barrier at 1.2613 (27 Mar recovery top).
However, slow stochastic on 4-hr chart is reversing from overbought territory, signaling extended correction.
Next strong support below 1.2500 handle lies at 1.2485 (Fibo 38.2% of 1.2374/1.2613 rally) and potential close below here would soften near-term structure and risk further easing towards next key points at 1.2443 (Fibo 61.8%) and 1.2414 (100SMA).
Res: 1.2557, 1.2568, 1.2613, 1.2671
Sup: 1.2500, 1.2485, 1.2443, 1.2414
