Cable remains firm and holding above 1.30 on Friday but lacks strength for attack at pivotal barrier at 1.3052 (falling 55SMA).
Momentum remains strong but starts moving sideways, with overbought slow stochastic, generating initial signal that bulls might be running out of steam. On the other side, weekly studies are improving (momentum created bull-cross and is running towards positive territory while slow stochastic is heading north after reversal from oversold territory) with the pair on track for strong weekly close (third straight bullish weekly close) which mark bullish signals.
Bullish signals need confirmation on weekly close above 1.30 (Fibo 61.8% of 1.3213/1.2661) to open way for break above 55SMA and extension of recovery rally from 1.2661 (15 Aug low) towards strong barrier at 1.3136 (daily cloud base).
Thick hourly cloud (1.2985/1.2944) underpins near-term action, with extended dips expected to find ground at 1.2940 zone (hourly cloud base, reinforced by 30SMA).
Res: 1.3052, 1.3083, 1.3136, 1.3173
Sup: 1.3000, 1.2985, 1.2940, 1.2907
