Deeper pullback is likely to precede fresh attack at key Fibo barrier
Cable edged higher on Friday on fresh optimism over Brexit, pausing after Thursday’s 0.5% drop, but near-term risk remains for deeper correction before bulls regain control.
Wednesday’s massive advance stalled at key Fibo barrier at 1.3173 and profit-taking pushed the pair lower.
More positive tones coming from Brexit talks, keep the larger picture positive, with current pullback seen as positioning for fresh attempt through 1.3173 pivot, break of which would open way for extension towards 1.33 zone initially.
Extended dips should find ground at/above pivotal supports at 1.3017/00 (55DMA / psychological support) to keep bulls intact.
The pair is set for weekly gain and formation of bullish engulfing pattern on weekly chart, which would add to positive signals.
Caution on magnetic narrowing daily cloud which will twist next week and fading bullish momentum on daily chart, which keep the downside vulnerable, with loss of 1.3017/00 pivots to put bulls on hold and risk further easing.
Res: 1.3078; 1.3122; 1.3152; 1.3177
Sup: 1.3036; 1.3017; 1.3000; 1.2960