- Cable extends upside for 5th consecutive session, extends gains after break out at Triangle top.
- Upside is testing 50-DMA resistance at 1.3275, decisive break above could see further upside.
- Technical studies are bullish, RSI and Stochs are biased higher. We see a bullish 5-DMA crossover on 20-DMA.
- Next immediate resistance above 50-DMA lies at 1.3321 (Nov 1st highs) ahead of 1.3338 (Oct 13 high).
- 20-DMA at 1.3172 is strong support, we see weakness only on break below.
- This week's FOMC meeting minutes, due for release on Wednesday, will be in focus for fresh clues over the Fed's monetary policy outlook along with key US durable goods orders data.
Support levels - 1.3200 (5-DMA), 1.3172 (20-DMA), 1.31 (trendline)
Resistance levels - 1.3321 (Nov 1st highs), 1.3338 (Oct 13 high), 1.34, 1.3416 (61.8% Fib retrace of 1.3657 to 1.3027 fall)
Recommendation: Good to go long on decisive break above 50-DMA at 1.3257, SL: 1.32, TP: 1.33/ 1.3320/ 1.3340/ 1.34.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 98.0265 (Bullish), while Hourly USD Spot Index was at -45.9096 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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