Expectations for Tory’s big election majority boost pound
Cable extends advance on Thursday after repeated rejection at 1.2320 Fibo support (23.6% of 1.2197/1.3012) on Wednesday.
The latest report from YouGov polls showed the biggest Tory majority in over three decades that further boosted positive sentiment but bulls were partially deflated on shortening odds of a Tory election majority by other bookies.
Daily techs support the advance (MA’s are in full bullish setup / bullish momentum is rising and stochastic is in steep ascend), with 4-hr chart showing attempts through the bear-trendline connecting 1.2984 and 1.2969 tops (currently at 1.2945) and adding to positive outlook.
Firm break above the trendline would expose 1.2969 (21 Nov high / upper 20-d Bollinger band), the last obstacle on the way towards key barriers at 1.2984 (18 Nov) and 1.3012 (21 Oct).
Dips are expected to provide better opportunities to re-enter bullish market, with daily 10DMA (1.2905) marking initial support and stronger downticks expected to find ground above 20DMA (1.2881) to keep bulls intact.
Res: 1.2950; 1.2969; 1.2984; 1.3012
Sup: 1.2920; 1.2905; 1.2881; 1.2865