GBPUSD Outlook: Cable holds bullish bias but falling cloud still caps
|Cable regained traction and returned above 1.30 handle, following previous day’s dip to 1.2963.
Positive sentiment on optimistic outlook for Brexit and strong US jobs data, keeps bulls in play for attack at falling cloud base at 1.3104, despite Wednesday’s action ended in long-legged Doji, which signals strong indecision.
Strong bullish momentum supports for further advance, as bullish signal was generated on repeated close above falling 55SMA.
However, overbought slow stochastic suggests bulls may take a breather and delay final attack at falling daily cloud (1.3104/1.3162), with cloud top being reinforced by Fibo 61.8% of 1.3472/1.2661 descend.
Broken 55SMA marks initial support at 1.3012, with dips expected to find ground above sideways-moving 10SMA (1.2952) to keep bullish bias.
Thursday’s BoE policy meeting would provide fresh direction signals.
Res: 1.3087; 1.3104; 1.3162; 1.3173
Sup: 1.3012; 1.2992; 1.2963; 1.2952
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