Cable is consolidating under fresh highs at 1.3616/18, posted on Fri/today, following last week’s 3.1% advance, as cable was strongly boosted by talks from BoE about possible rate hike in coming months.
Last week’s rally broke and closed above strong resistance at 1.3473 (weekly cloud top) which generated strong bullish signal.
Bulls eye next target at 1.3837 (Fibo 61.8% of 1.5016/1.1930 (June/October 2016 descend) as strong bullish sentiment continues to drive pound higher, with two long bullish daily candles underpinning.
However, bulls might be interrupted by deeper correction, signaled by overbought daily studies, but no firmer reversal signal being generated yet.
Solid supports 1.3473/40 (broken weekly cloud top/Fibo 38.2% of 1.3148/1.3618 upleg) are expected to ideally contain extended pullback.
Res: 1.3618, 1.3646, 1.3700, 1.3763
Sup: 1.3537, 1.3507, 1.3473, 1.3440
