Cable hit new highest since 12 March (1.2786) in European trading on Wednesday after cracking important Fibo barrier at 1.2777 (76.4% of 1.3199/1.1409 fall).
Fresh advance comes Tuesday’s long-tailed Doji and second consecutive daily close above 200DMA (1.2674) which signaled that the downside is well protected for now and bulls remain fully in control.
Golden-cross (5/200DMA) and bull-cross (10/100DMA) add to positive signals, as the pair maintains strong bullish momentum.
Bulls need close above 1.2777 Fibo barrier that would open way towards weekly cloud top (1.2938) and psychological 1.30 barrier.
Overbought daily RSI and stochastic warn that bulls may lose traction, although lacking firmer signal.
Repeated close above 200DMA to keep firm bullish bias.
Res: 1.2777, 1.2786, 1.2800, 1.2849
Sup: 1.2706, 1.2674, 1.2618, 1.2575
