Cable extends recovery on Monday and holding firm above 1.3000, with fresh acceleration higher hitting session high at 1.3045, just ahead of 1.3051 pivot (Fibo 61.8% 1.3125/1.2932 pullback / 19 July high).
Today’s rally is giving strong signals of reversal after pullback from 1.3125 peak found solid support at 1.2931 (just above Fibo 61.8% of 1.2811/1.3125 upleg), where strong downside rejection was seen.
Daily bulls remained intact after pullback and support further recovery which needs close above 1.3051 for confirmation.
Rising and widening 4-hr cloud continues to underpin the action and supports scenario.
UK GDP data on Wednesday are in focus for more signals.
Initial support lies at 1.3021 (4-hr cloud top), followed by psychological 1.3000 support and lower pivot at 1.2968 (4-hr cloud base / daily Tenkan-sen), loss of which would weaken near-term structure.
Res: 1.3051, 1.3080, 1.3100, 1.3125
Sup: 1.3021, 1.3000, 1.2968, 1.2931