Fresh bullish extension on Thursday cracks next resistance zone
Cable maintains strong bullish tone and extends to new seven-month high in early Thursday’s trading.
The pair was up 0.85% on Wednesday, in the biggest one-day rally since 18 Oct, as positive sentiment was strongly boosted by rising expectations for Conservatives’ majority and easing fears for a hung parliament.
Fresh bullish extension tests bear-trendline drawn off 1.7189 (July 2014 high) at 1.3150 and eyes barriers at 1.3167 (50% retracement of 1.4376/1.1958) and 1.3179 (3 May high), break of which would generate fresh bullish signal, following Wednesday’s close above 1.3100 round-figure barrier.
Strong bullish sentiment keeps pound well supported, to ignore overbought conditions (RSI / Stochastic) for now, but price adjustment cannot be ruled out.
Session low at 1.3102 (also broken 200WMA) offers initial support, followed by broken Fibo 76.4% barrier at 1.3045 and former high at 1.3012, where corrective action should find ground.
Res: 1.3147; 1.3167; 1.3179; 1.3200
Sup: 1.3102; 1.3045; 1.3012; 1.2986