Fresh advance in European trading on Tuesday eventually broke above trendline resistance (1.2966), opening way for renewed attack at key 1.30 resistance zone.
Better than expected UK construction PMI data (Nov 45.3 vs 44.5 f/c) contributed to bullish stance, as pound remains inflated by optimism for Tory’s strong majority on next week’s election.
Final break above thin weekly cloud adds to positive outlook, along with bullish daily techs, but bulls are expected to face strong headwinds from 1.30 zone, as overbought daily stochastic warns.
Consolidation before break higher is likely, with broken trendline to hold and maintain bullish bias and daily close above the trendline to confirm bullish signal.
Final break above 1.3012 (21 Oct high) would signal an end of 6-week consolidation and expose barrier at 1.3045 (Fibo 76.4% of 1.3381/1.1958 fall).
Res: 1.3000; 1.3012; 1.3045; 1.3100
Sup: 1.2966; 1.2930; 1.2910; 1.2886
Interested in GBP/USD technicals? Check out the key levels
- R3 1.3021
- R2 1.2986
- R1 1.2967
- PP 1.2932
- S1 1.2913
- S2 1.2878
- S3 1.2859
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.