Slight optimism pushes the price in the upper side of near-term range
Cable remains in green and probes again above 1.24 barrier in early Thursday’s trading, boosted by mild optimism in the market and mixed UK data which did not deteriorate in a grade that was expected.
Fresh advance moved into the upper side of the range that lasts nearly two weeks and is spanned between 1.2485 (27 Mar high) and 1.2164 (7 Apr low).
Near-term action remains underpinned by rising 10DMA which attempts to form bull-cross with 30DMA and help bulls, but daily techs are still mixed (bullish momentum started to fade, stochastic heads north and RSI is flat) and lack clearer direction signal.
On the other side, death-cross of 55/20DMA is forming and expected to increase pressure.
Fundamentals are again going to be the key driver, with death toll on COVID 19 in the UK reaching high and hopes rise that the pandemic might be peaking, with news that PM Johnson’s condition is stable that keeps the mood cautiously optimistic.
A number of key events scheduled today would also impact pound’s performance, however, stronger direction signal could be expected only on clear break of either side of current range.
Res: 1.2420; 1.2485; 1.2516; 1.2648
Sup: 1.2365; 1.2322; 1.2287; 1.2231