GBPUSD – bullish sentiment keeps 1.3655 target in focus; correction to precede fresh rally
Cable is consolidating on Friday after steep two-day rally, driven by positive hopes over Brexit talks and strong month-end demand, peaked at 1.3548 on Thursday.
Consolidation is narrow for now and holds above 1.3500 handle, however, steep bullish acceleration requires correction. Overbought daily studies support the notion, with buying on correction being favored.
Below 1.3500, broken Fibo 61.8% of 1.3655/1.3026 descend, marks solid support, with extended dips to be contained above rising 10SMA (1.3351) to keep bullish structure intact.
Final push towards key barrier at 1.3655 (20Sep post-Brexit recovery high) is expected after completion of current consolidative / corrective phase.
Res: 1.3548; 1.3570; 1.3600; 1.3655
Sup: 1.3500; 1.3487; 1.3415; 1.3379