Broken psychological 1.30 barrier reverts to strong support
Cable edged lower on Monday after recovery hit new high at 1.3059, as risk mode faded after US stimulus talks stalled again.
Sterling advanced strongly in past two week’s despite persisting pressure on Brexit talks which show no signs of progress.
Friday’s break and close above psychological 1.30 barrier was significant as the level resisted several attacks since mid-September.
Also, weekly close above 200WMA (1.2939) which capped gains in past three weeks, adds to positive signals.
Monday’s action is so far holding above broken 1.30 pivot which reverted to strong support, with deeper dips to stay above 1.2932 (200WMA / rising 10DMA) to keep bulls intact.
Immediate target lays at 1.3078 (50% of 1.3482/1.2675 descend) with stronger bullish acceleration to bring in focus pivotal barrier at 1.3179 (Fibo 61.8%).
Res: 1.3059; 1.3078; 1.3100; 1.3173
Sup: 1.3000; 1.2960; 1.2932; 1.2885