The cable erased most of the weekly losses in the previous week, closed below the 50Wsma at 1.5550.
It is a quite week in terms of UK economic data. The UK GDP data is due on Tuesday. Besides, the US FOMC statement is due on Wednesday. This week's traders remain under the influence of US data. The bunch of US important data is comming out this week.
At today's session, traders eye US core durable goods orders.
Technical overview: At Friday's session, the cable fell to 1.5467, but it managed to closed with gains at the end of the day. The previous swing support is found at 1.5450.
Wednesday's buying was not supported by follow up buying . Finally, the cable made a strong ceiling at 1.5700. Until it closed below this level, bears were trying to re-test 1.5450 or even 1.5435. Now, the cable hit a low at 1.5467.
The cable broke the 3-month ascending trendline, and it is still trading below it. In the four-hour chart, the cable fell below the bearish h&s pattern.
The 20Wsma is found at 1.5340, the 100Dema is found at 1.5450, the 200Dsma is found at 1.5410, and the 100Dsma is seen at 1.5300. The weekly trading pattern is framed between 1.5440 and 1.5700.
A daily close below 1.5450 will enable bears to try to extend the down ward journey towards 1.5300.
Intraday resistance is seen at 1.5540, 1.5560, and 1.5580. Support is found at 1.5500, 1.5470, and 1.5440. Selling is available below 1.5500 and buying is only available above 1.5600. Panic is likely to be triggered below 1.5440.
Alternative, in case if bulls manage to hold the level of 1.5440, they will aim for 1.5600 and 1.5700. Bulls will be back on track only if they manage to close above 1.5700, sell on a rise favors.
The material has been provided by InstaForex Company – www.instaforex.com