GBPUSD at new two-month high; bulls eye target at 1.3415
Cable posted new nearly two-month high at 1.3382 on Monday after fresh bullish acceleration triggered stops above Friday’s high at 1.3359.
Immediate focus lies at 1.3401 (02 Oct high) ahead of key target at 1.3415 (Fibo 61.8% of 1.3655/1.3026 descend), violation of which would generate another strong bullish signal.
No signs of rally’s stall so far, despite overbought slow stochastic on daily chart, but some hesitation on approach to 1.3415 target could be anticipated.
We expect broken trendline which connects former tops at 1.3337 and 1.3320 (1.3305) to limit dips, guarding key n/t support at 1.3276 (daily cloud top).
Res: 1.3401; 1.3415; 1.3455; 1.3506
Sup: 1.3305; 1.3276; 1.3256; 1.3214