Fed’s interest rate hike is back in the limelight. The greenback is well supported by traders who hope the hike will take place again. The cable fell at yesterday’s session on the back of Greece’s optimism.
Today’s events: Owing to the lack of macroeconomic data, it is understandably a quiet day on the markets. Yesterday, the British pound showed its dependence on the greenback. Things should pick up rapidly from today. We have a number of high-impact data releases to look forward to, starting with the UK CPI. Besides, US retail data is due. We expect the inflation to remain steady or weak.
Technical view: The cable managed to breach the 200Dema at yesterday’s session, but rejected and lost 100 pips getting away from its daily highs. The weekly support is found at 1.5430 and resistance is seen at 1.5600. Until the cable closes below 1.5600, bears are likely to re-test 1.5430 initially and extend towards 1.5360 and even further lower later. The 20Wsma is found at 1.5270. The weekly trading pattern is framed between 1.5270 and 1.5600.
The intraday support is found at 1.5460 and 1.5440. Resistance is seen at 1.5500, 1.5535, and 1.5550. The cable has been moving towards lower lows and lower highs in the four-hour chart. At yesterday’s session, the cable rejected at descending upper trendline.
Intraday selling is available below 1.5430 towards 1.5400, 1.5370, and 1.5350. Buying is available above 1.5520 with a target at 1.5550, strong momentum is expected above 1.5560 towards 1.5590, 1.5620, and 1.5650.
The material has been provided by InstaForex Company – www.instaforex.com