Cable remains firm and consolidating within tight range in early Wednesday’s trading, following Tuesday’s advance on better than expected earnings data that revived hopes of possible BoE rate hike. Technical studies on daily chart remain bullish, with positive signal being generated on Tuesday’s close above 1.2953 (Fibo 61.8% of1.3297/1.2397 descend). Pound enjoys support from hopes for smooth exit, delayed exit or possibly no exit at all, as UK labor party backs amendment that could stop scenario for no-Brexit deal. Sterling could rise further in such environment and could attack again psychological 1.30 barrier, violation of which would open way towards falling 200SMA (1.3082). Bullish bias is expected to remain in play while the price holds above 100SMA (1.2893), reinforced by rising 10SMA (1.2885) which attempts to form bull-cross and further strengthen near-term structure.
Res: 1.3000, 1.3029, 1.3082, 1.3149
Sup: 1.2942, 1.2893, 1.2885, 1.2830
