Fresh bullish signal on break above 200SMA
The cross broke through key barriers at 0.8790/92 (200SMA / 50% retracement of Jan/Mar 0.9113/0.8471 fall) on Tuesday, holding in green for almost two weeks and extending steep rally from 0.8489 (6 May low).
Close above 200SMA would add to strong bullish structure for attack at 0.8835/40 (100WMA / 14 Feb high) and possible extension towards next pivotal barrier at 0.8868 (Fibo 61.8%).
Negative outlook for pound on rising Brexit uncertainty supports the advance, as daily techs maintain strong bullish momentum and daily MA’s formed a number of bull crosses.
Overbought stochastic and RSI suggest a pause in uninterrupted 13-day rally, but so far lacking firmer signals.
Corrective dips are expected to offer better opportunities, with broken 200SMA marking initial support, followed by rising 5SMA (0.8772) and deeper pullback to be contained by rising 10SMA / broken Fibo 38.2% (0.8717) to keep bulls in play.
Res: 0.8809; 0.8835; 0.8868; 0.8890
Sup: 0.8790; 0.8771; 0.8717; 0.8683