Cable probes above 1.43 for the first time since Jan 25
Cable broke above 1.4300 barrier for the first time since 25 Jan, in fresh bullish acceleration on Monday, which offset initial signal of stall from Friday’s Shooting star.
Sterling extends bull-leg off 1.3965 (05 Apr trough) and is on track to fully retrace 1.4344/1.3711 corrective phase, as fresh bulls pressure key barrier at 1.4344 (post-Brexit recovery peak).
Expectations of BoE rate hike next month keep the pound supported, with eventual break through 1.4344 pivot needed to signal continuation of recovery phase from 1.1930 (07 Oct 2016 post flash-crash low).
Extension above 1.4344 pivot would face another strong barrier at 1.4401 (Fibo 61.8% of 1.5928/1.1930 descend), break of which would generate another strong bullish signal.
Caution of hesitation on approach to 1.4344 barrier as slow stochastic is overbought on daily chart, which could result in extended but limited consolidation before bulls continue.
Former tops of 26/27 Mar at 1.4244 and today/Friday’s lows at 1.4230/20, mark solid support zone which should ideally keep the downside protected.
Res: 1.4314; 1.4344; 1.4401; 1.4450
Sup: 1.4244; 1.4220; 1.4190; 1.4147