GBPUSD – daily cloud top continues to underpin, but recovery needs to clear 10SMA for stronger bullish signal
Cable moves higher on Monday after the third straight rejection at 1.4010 (daily cloud top) and attempts to generate fresh bullish signal on probe above Friday’s high at 1.4060 (also Fibo 23.6% of 4.4243/1.4010 bear-leg).
Thick daily cloud continues to underpin (cloud top is reinforced by rising 10SMA), however, bulls need confirmation on firm break above 1.4093/99 (10SMA / Fibo 38.2%) to signal stronger recovery.
Slow stochastic is reversing in oversold territory and may support scenario, but risk is seen on weakening momentum.
Failure to clear 10SMA could be selling signal, but the pair may hold in extended consolidation while cloud top / 20SMA.
Look for stronger direction signals on lift and close above 10SMA or loss of cloud top /20SMA lower pivots.
Res: 1.4099; 1.4126; 1.4154; 1.4188
Sup: 1.4010; 1.3981; 1.3966; 1.3915