Cable cracks psychological 1.20 barrier
Cable dented psychological 1.20 barrier and traded above this level for the first time since mid- August, in fresh acceleration higher after bulls paused for consolidation on Monday.
Weaker dollar on better than expected US PPI data which added to hopes that US inflation has peaked and holding in downward trajectory, provided fresh boost to sterling.
Bulls broke above 1.1834 (Fibo 76.4% of 1.2293/1.0348) where the action was repeatedly rejected in past two days and added to bullish signals on probe above 1.20 barrier.
Close above 1.1834 to keep bulls intact, though overbought conditions on daily chart cannot rule out deeper pullback towards broken 100DMA (1.1651) where dips should be contained.
Res: 1.2000; 1.2028; 1.2048; 1.2100
Sup: 1.1834; 1.1749; 1.1710; 1.1651