GBPUSD – bulls look for break above cloud and fresh extension higher

Cable extends advance for the fourth straight day on Monday and broke again into daily cloud (spanned between 1.3214 and 1.3261) after Friday’s surge deep into cloud stalled and closed for the day below cloud base.
Daily studies remain supportive for eventual break through key supports at 1.3261/66 (cloud top / Fibo 38.2% of 1.3655/1.3026 descend) to generate strong bullish signal for test of key barriers at 1.3320/37 (01 Nov / 13 Oct highs) which also mark tops of short-term range between 1.3026 and 1.3337.
The action is underpinned by ring hourly cloud and converged 10/20 SMA’s attempting to form bullish cross at 1.3171.
Broken daily cloud base marks initial support at 1.3214 which should ideally keep the downside protected and guard 10/20 SMA’s pivotal support.
Stronger bearish signal could be expected on return and close below 1.3122 (100SMA).

Res: 1.3266; 1.3305; 1.3320; 1.3337
Sup: 1.3214; 1.3186; 1.3171; 1.3122