Fresh bulls need weekly close above 20DMA to signal further recovery
Cable remains tall in early Friday’s trading and holds above broken 20DMA (1.2870), keeping firm near-term tone, following Thursday’s 0.25% rally and break above the tops of two-day congestion.
Sterling was inflated on fresh optimism that Brexit deadlock will finally end if ruling Conservative party wins majority in 12 Dec election.
Improved picture on break above pivotal 10/20DMA’s still lacks stronger technical signals as daily momentum and RSI remain in sideways mode.
Recovery from 1.2768 (8 Nov low) needs weekly close above 20DMA for initial bullish signal, with close above 1.2900/20 resistance zone (round-figure / Fibo 61.8% of 1.3012/1.2768), needed to confirm bullish stance and shift near-term focus higher.
Otherwise, the downside would remain vulnerable, with return and close below 10DMA (1.2859) to weaken near-term structure and risk fresh attacks at 1.2819 Fibo support and 1.2768 pivot.
Res: 1.2897; 1.2919; 1.2942; 1.2972
Sup: 1.2859; 1.2819; 1.2768; 1.2749