Cable rose in early European trading on Monday after Russian Ministry of Defense announced return of some troops to bases near Ukraine.
Positive news cooled the situation and revived hopes that a war can be avoided, lifting risk-sensitive sterling, adding to positive signals from overall solid UK January labor report.
Fresh advance pushes the price towards the mid-point of nearly two-week range (1.3490/1.3643), following another downside rejection at 1.3500 zones (100DMA / 50% retracement of 1.3357/1.3643 upleg) where the range floor has formed.
Although near-term action remains directionless while holding within the range, rising positive momentum on daily chart and thickening daily cloud after today’s twist, underpin and keep near-term positive bias.
Fresh bulls look for initial signal on today’s close above 1.3566 (daily Tenkan-sen), with extension above pivotal 1.3600 barriers (which repeatedly capped rallies in past two weeks) to help bulls to tighten grip and open way for further gains.
Res: 1.3566; 1.3600; 1.3643; 1.3656.
Sup: 1.3520; 1.3507; 1.3495; 1.3450.
