Fresh strength emerged after yesterday’s downside rejection at 1.2900 and failure to clearly break below daily Tenkan-sen/10SMA supports at 1.2908/14. Morning Doji Star reversal pattern is forming on daily chart, as today’s rally regained Monday’s multi-month high at 1.2987 and is pressuring psychological 1.3000 barrier. Overall bullish structure remains intact after shallow Mon/Tue correction was contained by initial supports and sees scope for further upside. However, overbought slow stochastic on both daily and weekly charts requires caution, as falling thick weekly cloud weighs (cloud base lies at 1.3088). Repeated failure at 1.3000 barrier would signal extended consolidation, as the pair is eyeing tomorrow’s BoE monetary policy decision for stronger signals. Alternatively, break below 10SMA/daily Tenkan-sen would weaken near-term structure and risk stronger correction.
Res: 1.3000, 1.3050, 1.3088, 1.3146
Sup: 1.2939, 1.2914, 1.2908, 1.2862
