Consolidation may precede fresh advance as appointment of new fin min boosted the sentiment
Cable maintains firm tone and holding near one-week high (1.3069) posted after Thursday’s 0.64% advance.
Marginal daily close above 1.3040 (50% of 1.3209/1.2871 / 30DMA) was bullish signal which requires confirmation on repeated close above here that would open targets at 1.3080 (Fibo 61.8%) and 1.3100 (round-figure) initially.
Thursday’s long bullish candle underpins the action, along with rising momentum on daily chart, but overbought stochastic warns that rally might be paused.
Bulls may enter consolidation after yesterday’s strong rally, with dips expected to hold above broken 1.30 pivot to keep near-term bias with bulls.
Pound also maintains positive sentiment which was boosted by appointment of Britain’s new finance minister Sunak, after his predecessor Javid unexpectedly resigned.
New minister is expected to be more aligned with PM Johnson’s policy in implementing more expansionary UK budget that also reduced expectations for BoE rate cut.
Res: 1.3069; 1.3080; 1.3129; 1.3183
Sup: 1.3026; 1.3000; 1.2973; 1.2951