Cable is consolidating under psychological 1.30 barrier which was cracked on Thursday’s 0.8% advance.
Eventual break above three-day congestion signaled continuation of recovery phase from 12 Dec 1.2476 low.
Sterling was boosted by improved sentiment on lowered chances of a no deal Brexit and rising hopes of new referendum.
Fresh bulls broke above 1.2953 pivot (Fibo 61.8% of Sep/Jan 1.3297/1.2397 downtrend) but need weekly close above here to open target at 1.3102 (falling 200SMA).
Bullish daily techs underpin, but overbought conditions and bearish divergence on slow stochastic warn of further easing before fresh attempt through 1.30 barrier.
Solid supports at 1.2894/68 zone (broken 100SMA /daily cloud top) should contain extended dips to keep bulls in play.
The pair is on track for the fifth straight bullish weekly close that supports positive scenario.
Res: 1.3000, 1.3085, 1.3102, 1.3174
Sup: 1.2935, 1.2894, 1.2868, 1.2839
