The cable made a strong pullback at yesterday’s session. The UK monetary policy encouraged investors.
The pound got new wings after the BoE’s statements about its rate hike. The claimant count change and average earnings index are due today. Besides, Federal Reserve Chair Janet Yellen testifies before the House Financial Services Committee and before Senate Banking Committee tomorrow.
Technical view: The cable gave a break from the bullish broadening wedge, close above that. The cable managed to gain momentum on the back of growing optimism about Greece. As we forecasted in our previous articles: «Until the Greece saga in the limelight the liquidity still remains of the euro». The cable is approaching towards 20Dsma 1.5645. In case of a daily close above 20Dsma, bulls will test 1.5700, 1.5775, and 1.5800. The trend favors buying on dips with sl 1.5450. The 50Dsma found at 1.5555 and 100Dems at 1.5440. The 50Wsma is seen at 1.5600.
At yesterday’s session, we advised buying above 1.5520 with a target at 1.5650. As of now, the level of 1.5647 was done at today’s Asian session. We are optimistic in the longer-term forecast.
Intraday support is found at 1.5600 50Wsma and resistance is seen at 1.5650 and 1.5675. For today’s session, fresh buying is available above 1.5650 towards 1.5675, 1.5700, and 1.5735 during the day. We can expect the level of 1.5790 to be reached in the extreme case.
The material has been provided by InstaForex Company – www.instaforex.com