Break of trendline resistance opens key 1.30 resistance zone
Fresh advance in European trading on Tuesday eventually broke above trendline resistance (1.2966), opening way for renewed attack at key 1.30 resistance zone.
Better than expected UK construction PMI data (Nov 45.3 vs 44.5 f/c) contributed to bullish stance, as pound remains inflated by optimism for Tory’s strong majority on next week’s election.
Final break above thin weekly cloud adds to positive outlook, along with bullish daily techs, but bulls are expected to face strong headwinds from 1.30 zone, as overbought daily stochastic warns.
Consolidation before break higher is likely, with broken trendline to hold and maintain bullish bias and daily close above the trendline to confirm bullish signal.
Final break above 1.3012 (21 Oct high) would signal an end of 6-week consolidation and expose barrier at 1.3045 (Fibo 76.4% of 1.3381/1.1958 fall).
Res: 1.3000; 1.3012; 1.3045; 1.3100
Sup: 1.2966; 1.2930; 1.2910; 1.2886