GBPUSD – n/t bulls are pausing under 10SMA; Fibo barrier at 1.3266 and 55SMA at 1.3134 are key points
Cable’s strong two-day advance peaked at 1.3225 and is pausing in early Wednesday’s trading , as falling 10SMA / Tenkan-sen (1.3230/34) limited rally and weigh on near-term action.
Daily studies are mixed but positive sentiment persists after upbeat UK industry data on Tuesday further boosted expectations of BoE’s rate hike in November.
Lift above 10SMA / Tenkan-sen would face next strong barrier at 1.3266 (Fibo 38.2% of 1.3655/1.3026) break of which is needed for stronger bullish signal.
Meanwhile, dips should be contained by 55SMA (1.3134) to keep near-term bulls in play.
Overall picture remains overshadowed by political uncertainty over Brexit negotiations and the position of PM May which could limit corrective action off 1.3026 low.
Res: 1.3234; 1.3266; 1.3318; 1.3356
Sup: 1.3181; 1.3134; 1.3110; 1.3074