Bulls hit new five-month high
The cross extends bull-run to new nearly five-month high at 0.8913 on Monday, as pound was hurt by significantly weaker than expected UK data that added to negative sentiment over Brexit concerns and run for the successor of Theresa May in PM position.
Last week’s break and close above important Fibo barrier at 0.8868 (61.8% of 0.9113/0.8471) was bullish signal, reinforced by formation of 20/200SMA golden-cross.
Rising 10SMA continues to track the advance since 8 May and underpins the action (currently at 0.8856).
Bulls eye targets at 0.8962 (Fibo 76.4%) and 0.9000 (psychological), but overbought stochastic and RSI warn of price adjustment (so far without firmer signals).
Dips should be ideally contained by rising 10SMA, but extensions towards pivotal 20 SMA (0.8814) cannot be ruled out and expected to provide better opportunities for re-entering bullish market.
Res: 0.8913; 0.8962; 0.9000; 0.9061
Sup: 0.8880; 0.8868; 0.8856; 0.8814