Fresh bullish acceleration in early European trading broke above 20SMA (1.4021) and probes above 1.4056 (4-hr cloud top) for retest of 1.4066 ( high posted after last week’s post-BoE’s hawkish hold announcement). Cable remains firm on fresh risk appetite that sent stocks higher and increased pressure on US dollar. Wednesday’s close above psychological 1.40 barrier was bullish signal, with big bullish daily candle with long tail underpinning. Bullish setup of daily studies supports but still lacking stronger momentum, which could obstruct bulls. Firm break above 1.4066 and 1.4081 (Fibo 61.8% of 1.4277/1.3764) is needed for fresh bullish signal for extension of recovery leg at 1.3764 (09 Feb low). Broken 20SMA offers immediate support at 1.4021 with 1.40 handle expected to ideally hold and deeper dips to be contained by 10SMA (1.3940) to keep bullish stance intact.
Res: 1.4066, 1.4081, 1.4156, 1.4200
Sup: 1.4021, 1.4000, 1.3974, 1.3940
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