GBPUSD – bulls gaining traction after a double rejection at 200DMA

Cable remains constructive in early Tuesday’s trading, after it was lifted by better than expected UK data on Monday and fading expectations for BOE rate cut in May.

Fresh recovery was also underpinned by a double downside rejection at 200DMA (1.2591) on Fri/Mon however, bearishly aligned daily studies (momentum indicator is in the negative territory and 10/20/55 DMA’s in bearish setup) keep in play risk of potential recovery stall.

Daily close above 10DMA (1.2637) and top of thin daily cloud (1.2663) is seen as a minimum requirement to maintain bullish bias, with lift above 1.2700 zone (Fibo 38.2% of 1.2893/1.2575 bear-leg / 20DMA) to strengthen near-term structure for further recovery.

Res: 1.2663; 1.2700; 1.2734; 1.2772
Sup: 1.2637; 1.2591; 1.2575; 1.2518