Bulls remain in play after last week’s 1.2% advance
Cable is holding well above key 1.30 support in early Monday’s trading and consolidating after last week’s 1.2% advance.
Main boost for pound last week was change of the finance minister in PM Jonson’s cabinet as new finmin Sumak is seen more compliant with Johnson’s expansionary policy.
Long bullish weekly candle underpins the action, with rising bullish momentum on daily chart adding to positive signals, but bulls may hold in extended consolidation, following repeated failure to clear 55DMA (1.3064) and overbought stochastic.
Strong bids are expected on 1.30 zone which needs to hold and keep bullish bias for break through 55DMA and pivotal Fibo barrier at 1.3080 (61.8% of 1.3209/1.2871) that would generate strong signal for extension of bull-leg from 1.2871 (10 Feb low).
Res: 1.3064; 1.3080; 1.3129; 1.3183
Sup: 1.3028; 1.3000; 1.2980; 1.2951