Bulls crack main technical barrier ahead of US NFP data
Cable cracked 200DMA barrier (1.2665) on Friday after double close above 100DMA (1.2560) generated fresh bullish signal.
The pair holds in green for the seventh straight day, as dollar continues and traders maintain cautious optimism for a deal in Brexit trade negotiations.
Close above 200DMA would add to positive signals but thickening weekly cloud weighs (cloud base lays at 1.2736).
Break here would open way for test of 1.2777 (Fibo 76.4% of 1.3199/1.1409).
Caution on fading bullish momentum and overbought daily stochastic which warn of possible stall.
US jobs data are eyed for fresh signal that would provide clearer picture whether the pound is going to resume the rally or will pull back.
Res: 1.2665; 1.2700; 1.2736; 1.2777
Sup: 1.2633; 1.2582; 1.2560; 1.2516