Cable maintains firm tone in early Friday’s trading despite upside rejection just under Thursday’s high (1.2727) overnight.
Near -term price action is holding between 1.2727 high and post-BoE low at 1.2671, supported by comments from BoE Governor Carney, who dismissed Johnson’s claim on no-deal Brexit, but weighed down by BoE’s cut of Q2 growth forecast.
The pair probes again above falling 30SMA (1.2694) following Thursday’s false break, with repeated failure to generate initial negative signal.
Also, end-of-week profit-taking after strong three-day rally, may push the price lower, as momentum is weakening and stochastic is entering overbought zone on daily chart.
Dips need to hold above 1.2670/58 (top of thick hourly cloud / 20SMA) to keep bullish bias for renewed attempts towards key barrier at 1.2763 (Fibo 38.2% of 1.3179/1.2505 / 7 June high).
Res: 1.2727, 1.2763, 1.2810, 1.2842
Sup: 1.2694, 1.2670, 1.2658, 1.2649
