The cable lost 1.3% last week, closed below 50Wsma but still remains above 20Wsma. The cable formed a lower high on the daily chart after five months.
Given the lack of macroeconomic data, it is logically a quiet day in markets. Things should pick up rapidly from Wednesday. However, we have a number of high-impact data releases, starting with the Claimant count change and earnings index due on Wednesday. Obviously, the cable's trading tone depends mostly on US data this week.
Weekly forecast: The 50Wsma seems at 1.5510 and 20Dsma remains at 1.5575. On the down side 20Wsma is set at 1.5400 and 100Dsma is found at 1.5360. The daily earlier swing remains at 1.5330. Until the cable closes above 1.5580, use spikes to add selling entries.
We made a forecast, «Whenever the cable touches the 1.5675 and 1.5700 zone, it printed a lower low. Initial low was 1.5530, later 1.5467. This time, we can expect 1.5450 or 1.5410». The cable made a low at 1.5425 (exactly138.2 FE).
In case a daily close is below 100Dema, the cable is likely to extend the bearish rally towards 1.5400, 1.5385 and even further to 1.5330.
Intraday: The cable is trading at 1.5485 compare to Friday's closing price 1.5489. Though the cable fell below 100Dema on Friday's session, by the end of the day it coped with a close above the same. Today, at the Asian session the cable is trading slightly above 100Dema which is seen at 1.5475.
Resistance seems at 1.5500, 1.5530, and 1.5545. Support is found at 1.5460, 1.5425, and 1.5400.
Selling trade opens below 1.5460 with targets at 1.5430, 1.5400, and even 1.5385.
Buying trade, opened above 1.5500 and 1.5520, contains high risk. The positional trade favours selling on a rally with sl 1.5585.
The material has been provided by InstaForex Company – www.instaforex.com