Sterling rallies to multi-month highs on fading fears of no-deal Brexit
Cable dented target at 1.3315 (FE100% of wave C from 1.2968) and posted new 2019 high at 1.3336 (the highest since 9 July 2018) on Wednesday, in extension of previous day’s strong rally.
Fading risk of no-deal Brexit and signals for short extension beyond the 29 Mar deadline if PM May loses the last vote on her plan on 12 Mar, keep the pound inflated.
Bulls could extend towards barriers at 1.3386/97 (50% retracement of 1.4376/1.2397 / Fibo 123.6% expansion of wave C), as daily stochastic and RSI continues to head north in overbought territory and bullish momentum continues to rise, however, corrective action in could be expected in coming sessions.
Close above broke FE100% barrier (1.3315) is needed to validate wave principles and maintain strong bullish signals.
Res: 1.3362; 1.3397; 1.3448; 1.3472
Sup: 1.3265; 1.3227; 1.3202; 1.3182