Cable rose to a new 32-month high in early Wednesday’s trading, extending Tuesday’s 0.5% advance on revived risk mode.
Fresh strength broke above last week’s new high at 1.3745 and eyes targets at 1.3772 (May 2018 high) and 1.3800 (round-figure), but more evidence is required to confirm the final break above 1.37 zone after several failures.
Daily technical studies support the action as moving averages are in a full bullish setup and positive momentum is rising.
Fed policy meeting is a key event today, with wide expectations that chief Powell will renew a commitment to an ultra-easy policy that would push the dollar down and fuel risk sentiment.
Initial supports lay at 1.3711/00 (5DMA/round-figure) guarding a more significant 10DMA (1.3668).