Short-term pound bulls gave up for the second consecutive day. They had lost 20Dsma, 50Dsm, and 200Dema earlier, and lost 100Dema at yesterday's session
The euro likely to be speculators' choice and USD is seen to be benefited. Today, traders eye the UK interest rate and US unemployment claims.
Technical view: Last week, the cable closed below 50Wsma at 1.5630 rejecting at 1.5780. This week, the cable lost 50Dsma seen at 1.5525 and 200Dema at 1.5550. The same levels are going to act as strong resistance in coming weeks. The nearest support is found at 1.5270 100Dema and 1.5260 20Wsma. The cable fell below 3-month ascending trendline testing its fate at 100Dema. In case of a daily close below 1.5260, bears are likely to re-test the previous swing low at 1.5170.
As we expected earlier, bulls failed to rebound between 1.5525 and 1.5430. Bulls' last accumulation point is found at 1.5260 20Wsma and 100Dsma sleeping there. TBulls' real problem will arise in case the price closes below 1.5260 opening gates to a re-test of the previous low of 1.5170 initially, and 1.5090, 1.5040, and 1.4900 later.
The intraday resistance is seen at 1.5385, 1.5440, and 1.5480. The support is found at 1.5300 and 1.5260. In the hourly charts (h1&h4), we can observe +ve divergence taking place. If a dip is available, traders can use it to open buy positions with sl 1.5260 on a 2-day closing basis. For the next couple of trading days, the trading pattern is likely to be framed between 1.5260 and 1.5550.
The material has been provided by InstaForex Company – www.instaforex.com