Cable rises above 1.3200 barrier, inflated by risk mode on vaccine news
Cable regained traction and eventually broke above 1.3200 barrier, hitting new nine-week high in European session on Tuesday.
Risk-sensitive sterling remains inflated by vaccine news that boosted global risk mode and so far offsetting negative impact from weak UK jobs data and fears of sub-zero interest rates, but traders keep an eye on EU/UK trade talks, one of pound’s key drivers.
Fresh rally also neutralizes downside risk following double daily Doji (Fri/Mon) and possible formation of bull-trap, with today’s close above 1.3200 (now reverted to strong support) to confirm bullish stance and signal continuation.
Bulls eye next targets at 1.3300 zone (Fibo 76.4% retracement of 1.3482/1.2675 / Fibo 138.2% projection of the upleg from 1.2855, 2 Nov trough).
Daily studies diverge from positive sentiment (bullish momentum is fading and stochastic in deep overbought territory) and warn that bulls may run out of steam in coming sessions.
Res: 1.3253; 1.3300; 1.3318; 1.3376
Sup: 1.3200; 1.3177; 1.3154; 1.3118