Cable surges above 1.2500 on fresh Brexit optimism
Cable broke above 1.2500 barrier in fresh acceleration on further optimism over Brexit deal after meeting of chief Brexit negotiators, following brief dip to 1.2407 on pessimistic comment from EU Tusk, who said that the deal may be possible but no guarantee of success.
Pound kept positive tone and subsequently rallied to 1.2543, keeping in focus 20Sep high at 1.2582, but showed its strong sensitiveness to any comment regarding Brexit.
Brief pullbacks are expected to offer better opportunities to re-enter bullish market, while holding above supports at 1.2500/1.2490.
Break lower would signal stronger correction, which needs to find ground above pivotal supports at 1.2411/07 (Fibo 38.2% of 1.2197/1.2543 / Friday’s spike low) to keep bullish bias intact.
Res: 1.2529; 1.2543; 1.2560; 1.2582
Sup: 1.2490; 1.2461; 1.2423; 1.2407