Cable jumped to the highest in over three weeks on Friday, following strong acceleration after multiple downside rejections (including Thursday’s short-lived spike to 1.3136, the lowest since 26 Nov 2025).
The pair was up 1.3% in two sessions, driven by weaker dollar that prompted profit-taking from 1.3675/1.3136 downtrend, as well as from expectations inflation in UK has picked up in September (report due next Wednesday) that fuels bets for anticipated BoE rate hike on November 5 policy meeting.
The latest rally improved technical picture on daily chart as north-heading 14-d momentum broke into positive territory and converging 10/20DMAs (below the price) are about to create bull-cross.
Thursday’s bullish engulfing contributes bullish signals (formation of reversal pattern on daily chart) as two-day recovery retraced over 38.2% of 1.36751.3168 descend so far, with close above this level to validate signal.
The pair is on track for significant weekly gain, following two week fall and two-week sideways trading that also contributes to reversal pattern signals.
Bulls eye initial target at 1.3389 (100DMA), followed by 1.3406 (50% retracement) guarding 200DMA (1.3431) and daily cloud base (1.3447).
Res: 1.3389; 1.3406; 1.3431; 1.3447
Sup: 1.3342; 1.3310; 1.3273; 1.3250
