Upbeat UK data lift cable for renewed attack at key 1.34 resistance
Cable regained traction and jumped towards key 1.34 resistance zone after three days in red and brief pullback being contained by rising 10DMA (currently at 1.3321).
Sterling maintains positive tone on improved risk sentiment over vaccine hopes, with fears on probability of no agreement in Brexit trade talks, having so far minor negative impact on bulls.
Upbeat UK HPI data added to positive tone in early European trading on Tuesday.
Short-term price action is holding at the upper side of bullish channel from 1.2675 (23 Sep low), supported by daily studies in full bullish setup and underpinned by November’s big bullish monthly candle (the pair was up 3% in Nov).
Eventual break of 1.34 pivot would open way towards key med-term barriers at 1.3481/1.3514 (2020/2019 highs).
Near-term action is expected to keep bullish bias while holding above rising 10DMA, while break here and last Friday’s low (1.3285) would put immediate bulls on hold and allow for deeper pullback.
Res: 1.3400; 1.3450; 1.3482; 1.3514
Sup: 1.3350; 1.3321; 1.3285; 1.3245