Cable eases from new 2019 high at 1.3349 (the highest since 9 July) on Thursday, signaling adjustment, as traders take profit after strong rally in past two days.
Daily 14-d momentum crests and RSI / Stochastic start to turn lower, signaling consolidative / corrective action.
Solid supports lay at 1.3265 (weekly cloud base), 1.3226 (55WMA) and 1.3203 (100WMA) where dips should ideally find support.
Significantly lower risk of no-deal Brexit and signals of extension of the deadline, fueled gains and continue to underpin.
Opposition Labor Party announced it will support a new referendum on Brexit, if PM May’s plan fails on 12 Mar vote.
Dip-buying ahead of fresh advance remains favored, as the pair is on track to end the second consecutive month in green, but close within weekly cloud is required to confirm scenario.
Fresh extension higher would look for test of targets at 1.3386 (50% retracement of 1.4376/1.2397), violation of which would expose barriers at 1.3397 and 1.3448 (Fibo 123.6% and 138.2% expansion of wave C from 1.2772 trough).
Res: 1.3319; 1.3349; 1.3386; 1.3397
Sup: 1.3265; 1.3226; 1.3203; 1.3153
