At yesterday’s session, the cable rejected at 20Dsma again, falling below 50Dsma, but managing to close above that level. It was the 4th consecutive day in a row.
The near-term picture turns bearish, as the cable is likely to re-test 1.5500. It has been moving towards higher lows and higher highs in the daily chart.
Earlier in July, the cable broke the 20Dsma, but was unable to close above it. In the near term, it seems to be capped at 1.5700. A strong close above 1.5600 20Dsma is likely to enable bulls to come back on track, aiming to breach the 1.5700 mark. In this case, gates to 1.5800 will be open.
The cable broke the 3-month ascending trendline and failed to close above that. These are few factors supporting the near-term bearish view towards 1.5500.
The 50Wsma is found at 1.5600 and the 20Wsma 1.5270.
Recently, the S&P lowered the British 2015 GDP growth forecast to 2.6 % (previously expected growth of 2.8%), but improves the forecast for GDP in the eurozone.
Bulls: The cable gave a break from the bullish broadening wedge closing above that. The trend favors buying on dips with sl 1.5450. The 50Dsma is found at 1. 5560 and 100Dems is found at 1.5440.
Intraday support is found at 1.5540 and resistance is seen at 1.5575, 1.5600, and 1.5610. At yesterday’s session, the cable hit a low at 1.5538. The intraday key zone to watch is located between 1.5510 and 1.5500, selling will accelerate below these levels towards 1.5450 during a day.
We can observe a bearish h&s pattern in the H1 chart. The cable has been managing to hold the neck line, but it is unlikely to go further to 1.5450. Safe selling is available below 1.5520 with targets at 1.5500, 1.5485, 1.5450, and 1.5435.
The material has been provided by InstaForex Company – www.instaforex.com