Short-term bullish bias
Key levels: downside: 1.3255 / upside: 1.3325
The pair has found some support along the 20-day moving average which has crossed above the 30-day one, this indicates that the uptrend is still intact and we could see an extended rally if support levels are well respected.
On the 4H chart, cable has tested multiple times the 38.2% (1.3220) Fibonacci retracement level from the mid-March rally. What we are seeing is a potential correctional wave 4 in the making, which would end in a rally as the wave 5. On the hourly chart, the price has broken above the 1.3270 resistance while the faster MA is about to cross above the slower one, suggesting buyers have taken control in the short-term.
A break above 1.3300 could trigger a strong rally towards 1.3325. The downside risk would be a break below 1.3255.
