Cable regained traction in early European trading on Monday after opening with gap-lower and falling 0.5% in Asia, as British parliament delayed a crucial vote on Brexit agreement.
The pair surged to new 5-month high (1.2985) in the last hour of Friday’s trading, as traders positioned for fresh action in both directions.
Extended uncertainty so far did not make stronger negative impact as traders remain confident that no-deal Brexit scenario would be avoided, as PM Johnson sent the letter to EU, requesting a delay to Britain’s exit.
Strong activities are expected these days, as 31 October deadline approaches.
Technical studies remain bullish, although overbought conditions warn of stall as psychological 1.30 barrier, also weekly cloud base, weighs.
Broken Fibo 38.2% barrier now acts as solid support which contained the action of last Friday / today, guarding more significant 200DMA (1.2714) loss of which would generate bearish signal.
Conversely, firm break of 1.30 pivot would open way for extension towards 1.3150 (falling 200WMA).
Res: 1.2985, 1.3000, 1.3047, 1.3100
Sup: 1.2900, 1.2874, 1.2839, 1.2800
