Cable stands at the front foot in early Wednesday’s trading and consolidates under new 2019 high at 1.3287, posted after Tuesday’s 1.1% rally (the biggest one-day gains since 1 Nov).
Overnight’s easing was brief and stayed above broken former high (1.3217), keeping strong bullish stance intact.
Optimism on sidelined no-deal scenario and signals of delayed Brexit keep pound well supported for now.
Bulls penetrated thick weekly cloud and eye barriers at 1.3297 (20 Sep high) and 1.3315 (FE 100% of the third wave of five-wave cycle from 1.2772 (14 Feb low), break of which is needed to validate wave principles and expose targets at 1.3387/97 (Fibo 50% of larger 1.4376/1.2397 fall/FE 123.6% of wave C from 1.2968 trough).
Bullish daily/weekly studies support scenario (formation of triple golden cross of 10/20/30 SMA’s over 200SMA adds to positive signals), but consolidative/corrective action could be anticipated on overbought conditions on daily chart. Former high and converged 55/100WMA’s mark strong supports at 1.3200/40 zone, which are expected to ideally contain and guard rising 5SMA (1.3143). Rising 10SMA (1.3043) marks pivotal support, violation of which would sideline bulls.
Res: 1.3297, 1.3315, 1.3397, 1.3448
Sup: 1.3240, 1.3200, 1.3143, 1.3112
