The uncertainty around the situation in Greece pushed the British pound to a low of 1.5540 at today’s opening. The final result in the referendum, published by the interior ministry, was 61.3% «No», against 38.7% who voted «Yes».
After a gap down, the cable managed to hold the parallel support at 1.5540 pulling back towards 1.5572. Last last week, the cable closed below 50Wsma at 1.5630, rejected at 1.5780. The same levels are going to act as strong resistance in coming weeks. The nearest support is found at 1.5520 50Dsma and 1.5487, which is another week low. The daily 200sma is found at 1.5450 and 100ema is seen at 1.5430. A daily close below 1.5520 opens gates for 1.5450 and 1.5430 in a day or two. Ahead of the FOMC meeting minutes, cable bulls are trying to rebound from 1.5430. If they fail, they will try to rebound from 1.5360. Bulls’ last accumulation point is found at 1.5280 20Wsma and 100Dsma sleeping there.
The intraday resistance is seen at 1.5600, 1.5645, and 1.5665. The support is found at 1.5540, 1.5420, and 1.5490. Risk selling is available below 1.5540, safe selling is available below 1.5520 towards 1.5490, 1.5450, and 1.5430. Safe buying is expected above 1.5680 with a target at 1.5735.
Upcoming events: Manufacturing production is due on Tuesday, UK’s budget is due on Wednesday, and the Bank rate is due on Thursday. Besides, the FOMC meeting minutes will be published on Thursday. We guess the Fed is unlikely to deliver a new approach on the rate hike. The cable will find the support around 1.5300 as it is likely to change the direction.
The material has been provided by InstaForex Company – www.instaforex.com