Cable extends step ascend into third straight day and probes again through key barriers at 1.3406 (50% retracement of 1.3675/1.3136 descend) and 1.3418 (Oct 22 high).
Weaker dollar on AI nervousness, helped pound to reach three-week high on Friday and pressure next strong barriers at 1.3428 (200DMA) and 1.3440 (daily cloud top).
Bulls failed at this zone last week (1.3418 was reached before sharp pullback) with clear break higher to generate signal of bullish continuation of larger uptrend from 1.3136.
The pair is on track for the third consecutive weekly gain as well as for monthly closing in green that adds to positive near-term outlook.
Daily close above 1.3406 Fibo level will be minimum requirement to keep bullish structure intact.
Bullish daily studies (strong positive momentum / diverging daily Tenkan/Kijun-sen after formation of bull-cross) also contribute.
Next targets lay at 1.3469 (Fibo 61.8%) and 1.3500 (round-figure).
Conversely, another failure at 1.3406 Fibo level would keep the downside vulnerable, with extension below 100DMA (1.3385) to weaken near-term structure.
Res: 1.3440; 1.3469; 1.3500; 1.3530
Sup: 1.3406; 1.3385; 1.3360; 1.3342
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