Bullish outside day provides positive signal but more work needed at the upside to confirm reversal

Cable is holding above 1.29 handle in early European trading, following Monday’s gap-higher opening and extension to 1.2920 high in Asia, boosted by fresh risk appetite on optimism in US/China trade talks.
Strong rally on Friday (the biggest one-day rally since 25 Jan) left double bottom at daily cloud top and also formed bullish outside day, initial sign of reversal.
Friday’s marginal close above 100SMA (1.2880) which capped the action in past five days, was initial bullish signal, which was reinforced by today’s open and holding above 10SMA (1.2894).
Momentum is in steep ascend and about to form bull-cross with its 7-d MA; stochastic is heading north and 5SMA is reversing up, all giving positive signals.
Fresh bulls need close above 1.2942 (Fibo 38.2% of 1.3217/1.2772, reinforced by daily Kijun-sen) to generate stronger reversal signal and expose pivotal barriers at 1.3000 zone, converged 20/200SMA’s (1.2989/1.3009) violation of which would confirm reversal.
Repeated close above 100SMA would boost positive signals and keep hopes for stronger recovery alive.
Conversely, failure to hold gains above 100SMA would keep the downside vulnerable, as daily cloud narrows and twists next week that could be magnetic.

Res: 1.2920; 1.2942; 1.2986; 1.3009
Sup: 1.2896; 1.2880; 1.2864; 1.2815