Cable extends higher on positive Brexit signals / upbeat earnings
Cable maintains positive tone from Tuesday’s upbeat UK earnings figures and weak dollar and extends advance in early European trading on Wednesday.
Improved daily techs on lift above 5;10;20SMA’s and fresh bullish momentum support the action, as bulls look for test of last Friday’s high at 1.2762 and possible extension towards key barrier at 1.2796 (Fibo 38.2% of 1.3179/1.2559 / falling 30SMA), break of which would spark stronger recovery.
Broken 5SMA offers immediate support at 1.2716, guarding lower pivots at 1.2686/89 (converging 10/20SMA’s).
Brexit story remains pound’s key driver, with focus on attempts of opposition Labor party to take control of the parliamentary agenda on 25 June and try to prevent no-deal Brexit scenario, as Boris Johnson, the favorite to succeed Theresa May, favors exit on 31 Oct deadline, regardless to the conditions.
Res: 1.2747; 1.2762; 1.2796; 1.2819
Sup: 1.2716; 1.2686; 1.2653; 1.2642