21 April, 2017
Cable is trading in narrowing consolidation under fresh high at 1.2904, with pullback being so far contained 1.2770 (lows of past two days). Strong bullish sentiment after Tuesday’s surge remains firmly in play and favors further upside, however, extended easing cannot be ruled out as slow stochastic is reversing from overbought territory on daily chart.
Next significant support at 1.2755 (Fibo 38.2% of Tuesday’s rally) should ideally contain, but scenario for deeper dips towards 1.2709 and 1.2663 (50% and 61.8% retracement levels respectively) remains in play. Weaker than expected UK Retail sales (-1.8% m/m in March vs -0.3% forecast at +1.7% in Feb) may drag the price lower.