The British pound edged higher at yesterday’s session pausing a 4-day fall. The US dollar fell after PMI data.
Last week, the cable closed below 50Wsma at 1.5630 rejecting of 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. At yesterday’s session, the cable held the 50Dsma, but faced strong resistance at 50Wsma 1.5630. For the past 3 sessions, the cable has been facing strong resistance at 20Dsma 1.5685 and making tops near 1.5640.
Traders eye UK manufacturing data and US trade balance today. We are approaching significant events starting from data on the UK budget, the FOMC meeting minutes, and banks’ interest rates.
Ahead of the FOMC meeting minutes, cable bulls are trying to rebound between 1.5525 and 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. As of now ,1.5525 acts as strong support, rounded to 1.5500. Until this level holds, bullish view remains in play.
The intraday resistance is seen at 1.5615, 1.5645, and 1.5665. The support is found at 1.5570, 1.5550, and 1.5525. Risky selling is available below 1.5570, 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. We guess the Fed is unlikely to show a new approach on the rate hike favoring favoring bullish way to trade the cable.
The material has been provided by InstaForex Company – www.instaforex.com