Cable hit new high at 1.4328 on Thursday, in extension of previous day’s 1.7% rally, after pound rallied on weaker dollar.
Important barriers at 1.4288 (Fibo 76.4% of post-Brexit vote 1.5016/1.1930 fall) and 1.4317 (FE 200% of the wave C from 1.3301 trough) were cracked on today’s spike but gains were so far short-lived as the pair eased to 1.4232.
No firmer signs of correction so far, despite overextended daily studies, as steep bull-leg from 1.3457 (11 Jan trough), part of broader recovery rally from 1.1930, could extend further of strong bullish sentiment on positive Brexit talks environment, strong signals of strengthening UK economy and significantly weaker US dollar.
Bullish scenario sees firm break above 1.4317 Fibo barrier for extension towards next target at 1.4511 (FE 238.2%).
Conversely, stronger reversal signal requires return below 1.4200 handle and retracement of at least 50% of Wednesday’s 1.3996/1.4262 rally to expose strong supports at 1.4026/00 zone (rising daily Tenkan-sen / psychological support / Wednesday’s low), break of which would generate stronger bearish signal.
Res: 1.4317, 1.4328, 1.4350, 1.4400
Sup: 1.4232, 1.4200, 1.4163, 1.4124
 and 1.4317 (FE 200% of the wave C from 1.3301 trough) were cracked on today's spike but gains were so far short-lived as the pair eased to 1.4232.){kind=link}