Cable extends advance into fifth straight day on Monday and extends above pivotal 1.12 zone (round-figure / Fibo 61.8% of 1.1738/1.0348), underpinned by the news that Britain would reverse plans to cut the highest rate of income tax, the part of the larger package of financial measures the government announced last month.
Improving daily studies on north-heading 14-d momentum and 5/10DMA’s in bullish setup, offer support, adding to stronger bullish signals on long tailed weekly and monthly candles, which point to a bear-trap under psychological 1.10 support and generate initial reversal signals.
Fresh bulls need a daily close above broken 1.1207 Fibo barrier (61.8%) to confirm positive signal and maintain bullish stance for attack at 1.1410 (Fibo 76.4% of 1.1738/1.0348 bear-leg).
Solid support at 1.1055 (10DMA) should keep the downside protected and guard pivotal 1.10 level, loss of which would sideline bulls.
Res: 1.1286; 1.1364; 1.1410; 1.1460.
Sup: 1.1085; 1.1055; 1.1000; 1.0930.