Cross heads higher as pound comes under fresh pressure
The cross regained traction and bounced from strong support at 0.8790 (200SMA / broken Fibo 50% of 0.9113/0.8471), which contained brief pullback from new 5 ½ month high at 0.8850, posted last Friday.
Sterling took a breather after steep fall in past three weeks, but prevailing negative tone on political turmoil and fears that the UK may leave EU without deal, keeps the cross well supported
Strong bullish momentum, formation of 20/100SMA’s bull-cross and 10SMA in steep ascend and approaching 200SMA, on track to form golden-cross, continue to underpin the action.
Bulls eye pivotal barrier at 0.8868 (Fibo 61.8%), violation of which would generate strong bullish signal for extension towards psychological 0.90 resistance.
Overbought daily studies continue to warn, but lack firmer signal, with bullish bias expected to remain intact and support dip-buying strategy while the price holds above broken 200SMA.
Res: 0.8850; 0.8868; 0.8900; 0.8962
Sup: 0.8790; 0.8773; 0.8726; 0.8678