Cable broke above 1.34 handle in extension of recovery from new five-month low at 1.3305, boosted by upbeat UK retail sales (Apr sales rose 1.6% m/m, vs 0.8% f/c and downward revised March figure to 1.1%).
Strong UK data and weaker dollar could help recovery and keep larger bulls sidelined for a while.
Rising 14-momentum and north-turning slow stochastic add to positive near-term bias.
Falling 10SMA marks strong obstacle (1.3469) which may limit recovery for extended consolidation before fresh push lower.
Break of 10SMA would sideline bears for stronger recovery towards key near-term barriers at 1.3564 (200SMA) and 1.3617 (10 May former congestion top).
Res: 1.3442, 1.3469, 1.3491, 1.3533
Sup: 1.3339, 1.3305, 1.3250, 1.3205
