GBPUSD – bulls regain control after Thursday’s roller-coaster
Cable regained strength and rallied above 1.3300 barrier on Friday after being shaken by comments about Brexit process.
The pair returned to its larger uptrend after ending Thursday’s roller-coaster action when it slumped from 1.3262 to 1.3121 and recovered all losses on subsequent swift bounce.
Sustained break above 1.3266 (Fibo 38.2% of 1.3655/1.3026 downleg) which limited upside attempts on Thursday, was bullish signal for extension towards next pivot at 1.3340 (20SMA / Kijun-sen / 50% retracement).
Sustained break here is needed to signal bullish continuation towards 1.3415 (Fibo 61.8% of 1.3655/1.3026).
However, the upside action could be limited here as slow stochastic is overbought on daily chart.
Broken 30SMA marks initial support at 1.3289, followed by broken Fibo 38.2% at 1.3266.
Lower pivot lies at 1.3207 (10SMA) close below which will be bearish.
No economic releases from UK are scheduled today and US data will be in focus.
Res: 1.3340; 1.3415; 1.3455; 1.3473
Sup: 1.3289; 1.3266; 1.3208; 1.3175