GBPUSD Cable retested 1.3400 barrier, following a hundred-pips gap-higher on opening on Monday, lifted by fresh Brexit optimism.
Chief EU negotiator said that the deal is still possible after two sides agreed on Sunday to extend talks and try to reach a trade agreement, before the transition period ends on Dec 31.
Fresh advance fully retraced last Thu/Fri strong fall (1.3%) and rose above Fibo 61.8% of entire 1.3538/1.3134 pullback, shifting near-term focus to the upside.
Daily moving averages returned to full bullish setup and rising momentum broke into positive territory, supporting the advance.
Bulls eye target at 1.3443 (Fibo 76.4%) violation of which would expose 1.3477 (last Wednesday’s spike high and 1.3500 barrier (Dec 3 high.
Daily close above broken Fibo 61.8% barrier (1.3384) is needed to confirm bullish stance.
Investors will continue to closely watch the developments in Brexit trade talks – pound’s key driver.
Res: 1.3443, 1.3477, 1.3500, 1.3538.
Sup: 1.3384, 1.3371, 1.3339, 1.3276.
