Cable hit new two-week high above 1.42 barrier in early European trading on Wednesday, extending strong bullish sequence from 1.3965 trough (05 Apr) and looking for full retracement of 1.4244/1.3965 fall.
Daily MA’s in positive setup and fresh bullish momentum underpin the action for final push towards key 1.4244 barrier (26/27 Mar double top).
Batch of data from the UK is due today (Construction, Industrial and Manufacturing production and trade data), with overall positive forecasts.
Upbeat releases could give fresh boost to sterling for eventual break through 1.4244 pivot.
Initial supports lay at 1.4200 and 1.4170 (session low) with stronger dips expected to hold above 1.4080 (converged north-heading 10/20SMA’s) to keep bulls in play.
Res: 1.4222, 1.4244, 1.4277, 1.4300
Sup: 1.4200, 1.4170, 1.4124, 1.4080
