GBPUSD – overall bulls keep focus at 1.40 barrier but extended consolidation may precede
Cable bounced to 1.3900 are in European trading after easing to 1.3857 in Asia, following gap-higher opening on Monday.
Overall bulls remain intact despite repeated strong rejections at 1.3942 and conflicting technical / political factors and keep focus shifted higher.
Bulls need sustained break above 1.3945 to open way for eventual test of psychological 1.40 barrier and further extension of recovery leg from post-Brexit low at 1.1930.
The pair is currently riding on the wave of five-wave sequence from 1.3075 (Oct/Nov higher base) which could travel to its Fibonacci expansion 138.2% at 1.4034 and FE 161.8% at 1.4123, in extension.
Thick hourly cloud (spanned between 1.3891 and 1.3849) marks solid support, guarding rising 10SMA (1.3737) which is expected to contain extended dips and keep bulls intact.
Res: 1.3911; 1.3945; 1.4000; 1.4034
Sup: 1.3891; 1.3849; 1.3804; 1.3756