GBPUSD – bulls hold grip despite strong upside rejection on Thursday

Cable kept firm tone and extended advance on Friday, despite strong upside rejection the previous day which left the daily candle with long upper shadow, indicating that bulls might be running out of steam.

Fresh strength probes again above cracked strong barriers at 1.2658/77 (tops of daily and weekly Ichimoku clouds respectively) with close above these levels to generate strong bullish signal as both cloud are thick.

Bulls retested psychological 1.2700 barrier and holding just ticks below next pivot at 1.2712 (Fibo 76.4% of 1.2772/1.2518), violation of which to add to positive near-term outlook and open way for full retracement of 1.2772/1.2518 bear-leg.

Daily studies maintain strong positive momentum and MA turned to full bullish setup, contributing to the upside prospects.

Res: 1.2712; 1.2755; 1.2772; 1.2804
Sup: 1.2677; 1.2658; 1.2633; 1.2615