The cable managed to paused its 3-week falling streak and gained 0.7% in the previous week.
The cable has been movinf towards higher lows and higher highs in the daily chart. It rejected at 20Dsma at yesterday’s session again. It was the 4th consecutive day in a row. The near-term picture turns bearish as the cable is likely to re-test 1.5500.
Earlier in July, the cable broke the 20Dsma, but it was unable to close above that level. It seems to be capped at 1.5700 in the near term. In case of a strong close above 1.5600 20Dsma, bulls might be back on track, aiming to breake 1.5700 and open gates to 1.5800.
The cable broke a 3-month ascending trendline, being unable to close above it. These are few factors supporting the near-term bearish view towards 1.5500.
The 50Wsma is found at 1.5600 and the 20Wsma 1.5270. Bulls must close above 1.5600 this week to retain their momentum.
Recently, the S&P lowered its forecast for the British GDP growth in 2015 to 2.6 % (previously expected growth of 2.8%), but raised the forecast for the eurozone’s GDP.
Bulls : The cable gave a break from the bullish broadening wedge, closing above that. The trend favors buying on dips with sl 1.5450. The 50Dsma is found at 1.5560 and 100Dema is found at 1.5440.
Intraday support is seen at 1.5575 and 1.5550 and resistance is seen at 1.5615 and 1.5650. Before further move up, the cable is likely to re-test support levels at 1.5540 and 1.5500. The intraday key level to watch is 1.5520. Selling accelerates below 1.5520 towards 1.5450.
The material has been provided by InstaForex Company – www.instaforex.com