Recent upmove gathered momentum after breaking 1.6587 resistance last Friday and the British pound rose to as high as 1.6780 this morning before easing. Friday’s rally caused the Tenkan-Sen to cross above the Kijun-Sen, providing a buy signal and although pullback to 1.6665/70 cannot be ruled out, the Tenkan-Sen (now at 1.6626) should hold and bring another upmove later towards 1.6830/40 but price should falter well below 1.6915 (100% projection of 1.5983-1.6587 measuring from 1.6338)
In view of this, we are still looking to buy cable on pullback and only a clear break below 1.6627 (50% Fibonacci retracement of 1.6474 to 1.6780) would defer this bullishness and risk correction towards the Kijun-Sen (now at 1.6559) which is likely to hold from here.
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