Cable stands at the front foot in European trading on Thursday, following bullish signal on previous day’s close above 1.1832 (Fibo 23.6% of 1.3199/1.1409) but bulls face headwinds on approach to psychological 1.20 barrier, with near-term action being weighed by weak UK retail sales data.
The pair is lacking momentum for now that may delay bulls but bias is expected to remain positive while the action holds above broken Fibo barrier at 1.1832 (reinforced by falling 10DMA).
Weak dollar contributes to pound’s strength, with break of 1.20 level to expose key Fibo barrier at 1.2093 (38.2% of 1.3199/1.1409), violation of which would generate reversal signal.
Res: 1.1973, 1.2000, 1.2093, 1.2129
Sup: 1.1832, 1.1775, 1.1741, 1.1709