Positive news and bullish techs fuel fresh extension higher
Cable advanced to new eleven-week high in Asia on Friday, after strong bullish signal was generated on final break and close above strong resistances at 1.2500 zone on Thursday.
Fresh wave of optimism on latest comments from European Commission Juncker, who said that Brexit deal could be passed before the deadline, inflated sterling.
Positive sentiment is reinforced by strong bullish momentum and rising daily MA’s in positive setup, but stochastic in sideways mode and moving around overbought zone border line, could be an obstacle.
Bulls pressure barrier at 1.2588 (Fibo 76.4% of 1.2783/1.1958), break of which would open way for extension towards 1.2669 (50% retracement of larger 1.3381/1.1958 fall).
Broken 100DMA now offers solid support at 1.2488 which should keep the downside protected and guard lower pivot at 1.2433 (10DMA), loss of which would soften near-term tone.
Res: 1.2588; 1.2600; 1.2669; 1.2705
Sup: 1.2520; 1.2501; 1.2488; 1.2433