Sterling continues to hold up well as Cable builds upon Wednesday’s bull breach of resistance. We are now cautiously positive on outlook. The move is helping to solidify the medium term support of the band $1.2900/$1.3000 as the lows of $1.2950 and $1.2960 have been formed in the past two weeks. Momentum indicators are tentatively edging positively again, with the RSI above 50, MACD lines turning positive around neutral and Stochastics rising. The reason for caution is that the market has not kicked on with the breakout above $1.3117 this week. It has been met by consolidation. The 23.6% Fibonacci retracement (of the big bull run $1.2192/$1.3515) comes around $1.3200 and is another resistance area. Getting through here would see the outlook really progressing for the Cable bulls. The hourly chart shows initial support at $1.3095 with $1.3030 a minor higher low.
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