Cable eased to 1.2800 handle on Wednesday, after strong rally on Tuesday that peaked at 1.2904, the highest since early Oct 2016. Strong rally that eventually broke above the top of consolidation of post-UK referendum fall has generated strong bullish signal for further upside, as the base has formed at 1.2000 zone. Firm bullish sentiment that was established on Tuesday’s call for an early election in UK, is expected to drive the price above psychological 1.3000 barrier for possible attack at 1.3113/43 pivots (weekly cloud base/Fibo 38.2% of post-referendum 1.5015/1.1986 fall). Meantime, the pair is trading within narrow consolidation which is so far holding above 1.2800 handle (approx Fibo 23.6% of Tuesday’s 1.2513/1.2904 rally), with extended dips expected not to exceed supports at 1.2755 (Fibo 38.2%) and 1.2705 (former high of 02 Feb / 50% retracement).
Res: 1.2859, 1.2904, 1.2950, 1.3000
Sup: 1.2800, 1.2755, 1.2704, 1.2662
