Cable extends strong rally of past two days on Thursday, to fully retrace 1.2977/1.2588 bear-leg (08 June pre-UK election high / 21 June low) and looking for retest of psychological 1.3000 barrier.
The pound was additionally boosted on Wednesday after BoE’s Governor Carney said that interest rate raise is more likely as British economy comes closer to operating at full capacity.
Thick daily cloud underpins the action, following Tuesday’s break above the cloud after the pair stayed within the cloud in past two weeks.
Break through 1.3000 barrier would open multi-month high and recovery rejection at 1.3050 zone, break of which is needed to signal continuation of recovery phase from 1.2000 zone.
Strong bullish acceleration may show signs of hesitation at 1.3000/50 resistance zone, as overbought daily studies suggest correction.
Daily cloud top / session low offer solid support at 1.2920, which should ideally contain, however stronger pullback may extend towards 1.2840/00 support zone.
Res: 1.3000, 1.3047, 1.3109, 1.3120
Sup: 1.2920, 1.2900, 1.2861, 1.2840