Fresh recovery extension on solid UK data / renewed risk mode
Cable extended recovery on Tuesday, boosted by UK GDP data which showed no change in Britain’s economic growth despite expectations for slowdown.
Improved sentiment kept pound at the front foot for the second day, with advance being underpinned by fresh risk appetite on easing virus spreading fears that pressured dollar and sidelined about EU/UK friction regarding talks about new trade relations after Britain exited the bloc.
Techs on 4-hr chart turned positive, while dailies are still mixed (rising negative momentum vs stochastic on track to emerge from oversold territory.
Fresh recovery sees minimum requirement on close above cracked Fibo barrier at 1.2951 (23.6% of 1.3209/1.2871) that would expose pivotal 1.30 barrier (Fibo 38.2% / psychological), break of which would generate strong bullish signal.
Res: 1.2968; 1.3000; 1.3040; 1.3080
Sup: 1.2894; 1.2871; 1.2822; 1.2768