Expected dovish stance from Fed could lift cable for clear break of 1.37 zone
Cable rose to new 32-month high in early Wednesday’s trading, extending Tuesday’s 0.5% advance on revived risk mode.
Fresh strength broke above last week’s new high at 1.3745 and eyes targets at 1.3772 (May 2018 high) and 1.3800 (round-figure), but more evidence is required to confirm final break above 1.37 zone after several failures.
Daily technical studies support the action as moving averages are in full bullish setup and positive momentum is rising.
Fed policy meeting is key event today, with wide expectations that chief Powell will renew a commitment to ultra-easy policy that would push the dollar down and fuel risk sentiment.
Initial supports lay at 1.3711/00 (5DMA / round-figure) guarding more significant 10DMA (1.3668).
Res: 1.3758; 1.3772; 1.3800; 1.3830
Sup: 1.3700; 1.3668; 1.3635; 1.3609