Cable jumped above 1.30 barrier and hit session high at 1.3040 after BOE surprised by QE increase above expectations, in anticipation of stronger than expected contraction of Britain’s economy on new lockdown and Brexit.
Sterling regained traction after Wednesday’s wild swings within over 200-pips range on conflicting news about US elections.
News-driven near-term action remains without clear direction and awaiting signals, but fresh advance shifts immediate focus higher, with close above 1.30 seen as initial requirement.
Bulls need close above cracked key Fibo barrier at 1.3054 (61.8% of 1.3177/1.2855) and top of thickening daily cloud (1.3063) that would open way towards next targets at 1.3173/77 (Fibo 61.8% of 1.3482/1.2675 / 21 Oct peak).
Conversely, repeated close below 1.30 handle would weaken near-term structure, with return and close below daily cloud base (1.2958) to bring bears back to play.
Res: 1.3054, 1.3063, 1.3101, 1.3140.
Sup: 1.3000, 1.2983, 1.2958, 1.2914.
