Cable heads towards weekly cloud top target in extension of strong post-BoE rally


Cable maintains strong bullish tone on Friday and extends gains to the highest levels since late June 2016, approaching target at 1.3473 (weekly cloud top / Fibo 50% of 1.5016/1.1930 descend).
The pair soared on Thursday after hawkish tone from BoE boosted expectations for early rate hike and fresh bullish acceleration on Friday took out falling weekly 100SMA at 1.3420.
Thursday’s long bullish candle continues to underpin for further extension of broader uptrend (recovery rally from post-Brexit lows) for attack at strong barrier provided by weekly cloud top.
Bullish techs on daily / weekly chart are accompanied with strong bullish sentiment and remain supportive for further advance, as break above weekly cloud top could spark fresh bullish acceleration towards 1.3835 (29 Feb low / Fibo 61.8%).
Meanwhile, the pair may show hesitation on approach to 1.3473 target, overextended daily studies suggest correction.
Corrective dips will be seen as fresh buying opportunities, with initial support at standing at 1.3268 (former top of 03 Aug) and rising daily 10SMA / Tenkan-sen at 1.3177, expected to contain.

Res: 1.3449; 1.3473; 1.3500; 1.3574
Sup: 1.3381; 1.3334; 1.3300; 1.3268


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