Bulls face strong headwinds from key Fibo barrier

Cable regained traction after 0.7% drop on Monday and jumped above 1.35 handle in early Tuesday’s trading.
Weaker dollar and fresh rise of FTSE100 index lift pound, as final UK/EU trade deal keeps positive sentiment, although the agreement is seen closer to hard Brexit or even no-deal scenario and not seeing a bright future for the British economy in coming years after divorce from the European Union.
Near-term action remains congested under new 2 ½ year highs (1.3624/18, posted on 17 / 24 Dec respectively) as bulls faced strong headwinds at key Fibo resistance at 1.3618 (38.2% of 1.7189/1.1409, 2014/2020 fall).
Repeated upside rejection gives initial warning of stall, but bulls still hold grip, supported by rising bullish momentum on daily chart and increased number of net GBP long positions.
On the other side, daily RSI and stochastic show negative divergence that may slow bulls and keep the currency pair in extended sideways mode.
Also, risk of ‘buy the rumor – sell the fact’ scenario persists as the pound was inflated on expectations of a trade deal and traders may collect profits from Sep/Dec 5.5% rally.
Pivotal supports at 1.3424 (20DMA) and 1.3385 (30DMA) are in focus and break would weaken near-term structure, but extension below rising 55DMA (1.3233) would sideline bulls and signal deeper pullback.
Conversely, sustained break above 1.3618 pivot would signal bullish continuation.

Res: 1.3522; 1.3575; 1.3618; 1.3676
Sup: 1.3424; 1.3385; 1.3303; 1.3233