Cable continues to head north on Wednesday and extends previous day’s strong rally. Fresh advance broke through pivots at 1.3405 (20SMA) and 1.3410 (50% retracement of 1.3617/1.3204).

Bulls are supported by stronger Euro and soft-Brexit hopes, with 5/10SMA underpinning the advance.

Break above 20SMA opens targets at 1.3459 (Fibo 61.8%) and 1.3480 (falling 30SMA).

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On the other side, bulls may show signs of fatigue as momentum is losing traction and slow stochastic turns sideways at the boundary of overbought territory, while falling daily Kijun-sen caps the rally for now.

Consolidation should hold above solid supports at 1.3362/51 zone (broken Fibo 38.2% of 1.3617/1.3204 / rising 5SMA) to keep bullish bias intact.

Res: 1.3429, 1.3459, 1.3482, 1.3520
Sup: 1.3384, 1.3362, 1.3351, 1.3302


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