The Bank of England’s Monetary Policy Committee voted to maintain the key rate at 0.5% at the meeting on July 8. The Committee also voted to maintain the asset purchasing program at GBP 375 billion.
The cable paused a 2-day losing streak managing to post mild gains, rejected at 100Dema. Bulls had lost 20Dsma, 50Dsma, and 200Dema earlier, and rejected at 100Dema at yesterday’s session
Until the Greece’s steam evaporate, the euro was likely to be speculators’ choice.
Technical view: Last week, the cable closed below 50Wsma at 1.5630 rejected at 1.5780. This week, the cable lost 50Dsma 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 the 3 month ascending trendline testing its fate at 100Dema. In case of a daily close below 1.5260, bears will to re-test the previous swing low at 1.5170. Bulls will face a real problem in case the price closes below 1.5260 that is likely to open gates to re-test the previous low of 1.5170 initially and 1.5090, 1.5040, and 1.4900 later.
The intraday resistance is seen at 1.5420, 1.5460, 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 trades with sl 1.5260 on a 2-day closing basis. The trading pattern is likely to be framed between 1.5260 and 1.5550 for the next trading days.
The material has been provided by InstaForex Company – www.instaforex.com