Sterling is in strong rally for the third day, established above 1.4600 handle and heading towards next strong barrier at 1.4689 (200SMA). Today’s bullish acceleration after gap-higher open, surged above the top of thin daily cloud at 1.4487, on fresh bullish momentum, gained on relief from significant fall of Brexit fears.
Daily studies are turning into full bullish mode, with expanding 20d Bollinger bands, suggesting further upside action. Break above 200SMA is needed to open key short-term barriers at 1.4737/68 (26/03 May peaks, which mark upper breakpoints.
Buying dips remains favored, with good supports laying at 1.4542 (hourly trough) and 1.4522 (Fibo 61.8% of today’s rally).
Only return below daily low at 1.4431 would weaken near-term structure.
Res: 1.4670; 1.4689; 1.4737; 1.4768
Sup: 1.4613; 1.4587; 1.4542; 1.4522
News Source: http://www.fxstreet.com/