Cable has fully retraced Monday’s pullback to 1.3046 on fresh rally that probes above Friday’s high at 1.3113. The pair is back to strength after Monday’s consolidation and looking for extension of last week’s strong rally.
Sustained break above 1.3109 (Fibo 38.2% of 1.5016/1.1930 descend) is needed to confirm bullish continuation towards strong barriers at 1.3445 (06 Sep 2016 high) and 1.3473 (weekly cloud top / 50% retracement of 1.516/1.1930).
UK CPI data are in focus with release above 3% expected to give fresh boost to the pound.
Conversely, higher base at 1.3046 (Mon low / Tue Asian session low, also former high of 18 May) could come under increased pressure on CPI reading below forecasted 2.9%).
Res: 1.3149, 1.3200, 1.3253, 1.3300
Sup: 1.3046, 1.3030, 1.3000, 1.2968
