Cable extends advance into fourth consecutive day and hits new three-week high on Thursday, up 1.4% since Monday.

Strong risk sentiment and optimism over EU/UK trade talks continues to boost sterling, with Wednesday’s close above 1.2598 (Fibo 61.8% of 1.2813/1.2251) generating bullish signal.

Today’s extension higher approaches strong barriers at 1.2680/87 (Fibo 76.4% / 200DMA), break of which would open way towards weekly cloud top (1.2736) and unmask 10 June peak at 1.2813.

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Rising bullish momentum on daily chart supports the advance, but overbought stochastic warns that bulls may take a breather and consolidate before resuming through 200DMA.

Dip-buying above 1.2606/1.2598 (broken 55WMA / Fibo 61.8%) is seen as favored scenario, with weekly close above these levels needed to confirm strong bullish stance.

Res: 1.2666, 1.2687, 1.2736, 1.2753
Sup: 1.2625, 1.2598, 1.2556, 1.2532


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