The length of Brexit delay will be the main question for EU summit
Cable remains constructive and extended recovery in early Tuesday’s trading, but bulls were so far capped by 55SMA (1.3094), which guards more significant daily cloud top (1.3110) and Fibo 38.2% of 1.3381/1.2977 (1.3131).
Technical studies send mixed signals as daily momentum heads up and created bull-cross, while stochastic and RSI are flat and MA’s remain in bearish setup.
Cracked bull-trendline offers immediate support at 1.3042, ahead of key 200SMA (1.2976) loss of which will generate strong bearish signal.
Bulls need sustained break above daily cloud and Fibo barrier at 1.3131, to generate reversal signal and expose next key barriers at 1.3160 (converged 20/30SMA’s) and 1.3191/96 (3 / 4 Apr double-top).
Markets await news from Brexit negotiations for fresh direction signals, as PM May is going to meet German Chancellor Angela Merkel and French President Macron, in last attempts to secure short extension of Brexit and buy some time to make breakthrough in talks with opposition, which so far showed to results.
May wants to make a deal before EU summit tomorrow, as the EU will likely insist on extension of one year, with possibility to leave, if UK does present the plan on the summit.
Res: 1.3094; 1.3110; 1.3131; 1.3160
Sup: 1.3053; 1.3042; 1.3005; 1.2976