Cable maintains positive tone from Tuesday’s upbeat UK earnings figures and weaker dollar and extends advance in early European trading on Wednesday.
Improved daily techs on lift above 5,10,20SMA’s and fresh bullish momentum support the action, as bulls look for test of last Friday’s high at 1.2762 and possible extension towards key barrier at 1.2796 (Fibo 38.2% of 1.3179/1.2559 / falling 30SMA), break of which would spark stronger recovery.
Broken 5SMA offers immediate support at 1.2716, guarding lower pivots at 1.2686/89 (converging 10/20SMA’s).
Brexit story remains pound’s key driver, with focus on attempts of opposition Labor party to take control of the parliamentary agenda on 25 June and try to prevent no-deal Brexit scenario, as Boris Johnson, the favorite to succeed Theresa May, favors exit on 31 Oct deadline, regardless to the conditions.
Res: 1.2747, 1.2762, 1.2796, 1.2819
Sup: 1.2716, 1.2686, 1.2653, 1.2642