Bulls hold above 1.41, on course for 1.42+ extension
Cable is maintaining positive tone and consolidating under new 2 ½ month high (1.4158) following Monday’s 0.80% advance, sparked by talks about Scottish independence referendum story and weaker dollar after disappointing US jobs data.
Expectations of the next phase of England’s lockdown easing which starts next week, further improves pound’s sentiment.
Today’s action is holding above 1.41, former pivotal resistance, reverted to significant support.
Two large bullish candle (Fri/Mon) underpin the action, along with rising positive momentum on daily chart.
Bulls eye Feb 25 high, hit before strong bearish acceleration (1.4181) and 1.4200 (round-figure), violation of which would open way for test of 2021 high (1.4238, posted on Feb 24).
Daily close above 1.41 support to confirm strong bullish stance.
Res: 1.4158; 1.4181; 1.4200; 1.4238
Sup: 1.4100; 1.4073; 1.4020; 1.4000