Cable is probing through 1.37 barrier for the fourth time in early Thursday’s trading, after spike to new multi-month high at 1.3717 on Wednesday.
Better than expected UK inflation data continue influence pound, along with rising optimism about speedy coronavirus vaccine rollout and weaker dollar.
Monday’s hammer candle after bears got trapped under 20DMA, generated reversal signal and continue to underpin near-term action.
Bulls look for eventual close above 1.3676 (Fibo 76.4% of 1.4376/1.1409 drop) and lift above 1.3700 zone to signal continuation of larger uptrend and focus psychological 1.40 barrier. Daily studies remain in bullish setup but still lack positive momentum that may slow bulls and keep the action in prolonged consolidation.
Session low at 1.3646 offers initial support, ahead of rising 10DMA at 1.3620 and pivotal 20DMA at 1.3591, loss of which would weaken near-term structure.
Res: 1.3717, 1.3756, 1.3784, 1.3829
Sup: 1.3646, 1.3620, 1.3591, 1.3532