Bulls remain in play but still facing strong headwinds at 1.37 zone
Sterling regained traction and rising in early Monday’s trading, following bearish close on Friday and failure to register weekly close above 1.37 mark.
Daily studies remain in bullish setup but overbought stochastic and weaker momentum suggest that bulls may hold in extended consolidation before final break higher, favoring dip-buying above rising 10 DMA (1.3653) and Friday’s low (1.3635), with strong close last week, underpinning the action.
The pair is on track for the third straight bullish monthly close and second monthly close above key Fibo barrier at 1.3617 (38.2% of 1.7189/1.1409, 2014/2020 fall) that adds to positive signals.
Caution on break below rising 10WMA (1.3523, which tracks the action for past three months) that would weaken the structure and put larger bulls on hold.
Res: 1.3745; 1.3772; 1.3790; 1.3829
Sup: 1.3670; 1.3653; 1.3635; 1.3611