Cable makes a bullish start on Monday by bouncing from the lows of recent congestion after 20DMA (1.2897) contained multiple attacks in past few days.
Friday’s long-legged Doji points to indecision as traders await more signals, particularly news from pound’s main driver – Brexit talks.
Fresh gains cracked psychological 1.30 barrier ahead of today’s top event – telephone talks between EU and UK Brexit negotiators, Michael Barnier and David Frost, who are going to discuss when and how to restart talks after Britain said on Friday that there was no point on more talks, unless the EU fundamentally changes its position.
Daily studies show rising bullish momentum and north-heading RSI that supports fresh advance.
Break of pivotal barriers at 1.30 and 1.3020 (55DMA) would further improve near-term outlook and open way towards key resistances at 1.3082 (12 Oct high) and 1.3102 (daily cloud top), violation of which would signal continuation of recovery leg from 1.2675 (23 Sep low).
Broken cloud base and 10DMA (1.2964/59) mark initial support, with daily close above these levels to keep fresh bulls in play and neutralize risk of retesting pivotal 20DMA support.
Res: 1.3020, 1.3064, 1.3082, 1.3102
Sup: 1.2960, 1.2926, 1.2897, 1.2878
