GBPUSD (longer-term outlook)
Cable is holding in an uptrend since mid-Jan 2017, after post-Brexit vote bearish acceleration based at 1.1950 zone.
Steady recovery is looking for extension above 1.3655 (2017 high / the highest since 24 June 2016) as 1.3655/1.3026 (20 Sep /06 Oct 2016) correction is nearly completed.
Multiple bull-crosses of weekly MA’s and weekly indicators in positive territory underpin the action for final break above 1.3655 pivot and extension towards next barrier at 1.3837 (Fibo 61.8% of post-Brexit vote 1.5016/1.1930 fall).
Weak US dollar and strong economic data from the UK, along with BoE’s first rate hike in over a decade, maintain strong bullish sentiment.
Higher base at 1.3300 zone marks initial support (reinforced by rising weekly 20SMA) while higher base at 1.3030 zone (also near Fibo 38.2% of entire 1.1986/1.3655 recovery leg) marks pivotal support, loss of which would generate stronger bearish signal and sideline bulls.
Res: 1.3655; 1.3837; 1.3900; 1.4000
Sup: 1.3490; 1.3300; 1.3145; 1.3030