Weekly bullish engulfing adds to positive near-term outlook
Cable keeps positive tone following Thursday’s 3.3% rally, which generated an additional bullish signal on close above descending 100DMA (1.1658).
Weaker dollar keeps pound inflated and bulls focus target at 1.1834 (Fibo 76.4% of 1.2293/1.0348), the last obstacle en-route to psychological 1.20 barrier.
Bullish daily techs are additionally supported by formation of bullish engulfing pattern on weekly chart, though a pause for consolidation on overbought conditions / partial profit-taking cannot be ruled out.
Broken 100DMA offers immediate support ahead of broken Fibo 61.8% (1.1550) and 1.1500 level which should keep the downside protected and offer better buying levels.
Res: 1.1770; 1.1834; 1.1900; 1.2000
Sup: 1.1658; 1.1645; 1.1550; 1.1500