GBPUSD – shallow correction likely to precede final push towards key 1.3655 barrier
Cable cracked psychological barrier at 1.3600 on Tuesday and hit new multi-month high at 1.3612 in extension of steep bullish acceleration in past four days.
Subsequent easing was so far shallow, however, overbought daily studies warn of deeper correction.
Rising hourly cloud (spanned between 1.3533 and 1.3497) continues to underpin and is expected to ideally contain extended dips.
Bulls eye post-Brexit recovery high at 1.3655 (20Sep high and the highest in 2017), above which to signal continuation of broader recovery from post-Brexit fall low at 1.1930 towards next target at 1.3837 (Fibo 61.8% of 1.5016/1.1930 fall).
Construction PMI data are the sole release from the UK today (52.8 f/c in Dec vs 53.1 previous month) with US economic indicators due later today, being focused.
Res: 1.3612; 1.3643; 1.3655; 1.3701
Sup: 1.3588; 1.3549; 1.3533; 1.3497