Cable extends recovery following bounce from important 1.2400 support
Cable maintains positive tone bounced after testing important 1.2400 support (converged 10/20DMA’s) in early European trading on Tuesday.
Recovery extends into fifth straight day and is underpinned by thickening daily cloud, as Monday’s close above 10/20DMA’s added to positive signal.
Fresh advance probes again through 50% retracement of 1.2647/1.2247 (1.2447), cracked on Monday and focusing targets at 1.2494 (Fibo 61.8%) and 1.2512 (falling 55DMA) violation of which would open key barriers at 1.2647 (200DMA / 14 Apr high).
Repeated close above 1.24 handle is needed to confirm bullish stance.
CBI retail sector report is due today and could sour the sentiment as forecast for April is -40, down from -3 in Marchs, due to pandemic lockdown.
Res: 1.2494; 1.2512; 1.2553; 1.2600
Sup: 1.2400; 1.2359; 1.2341; 1.2298