The cable has been moving higher for 5 days. After the FOMC dovish statement, pound bulls hit a high of 1.5930.
The cable is approaching resistance zone between 1.5960 200Wema and 1.6040 100Wsma. In case of a daily close above 1.6050, bulls are likely to extend another 150 and 250 pips. The monthly resistance is seen at 1.5935 50Msma. We expect the pair to go through healthy correction before further move up. The strong support is found at the previous swing high of 1.5800, the previous swing lower high of 1.5700, and strong support base formed at 1.5440.
In the hourly chart, the pair made multiple tops at 1.5928. We advise traders to wait patiently to close above 1.5930. Today's closing will provide a weekly close. In this case, bulls will immediately aim for 1.6040, 1.6150, and 1.6300 in July. In case of a weekly close above 1.6050, bulls will aim for another 300 pips. Traders can keep an eye on today's close must be higher than 1.5930 and weekly above 1.6050.
For an intraday session, support is found at 1.5849 and 1.5800. Resistance is seen at 1.5930, 1.5960, and 1.6000. Bullish trade is available above 1.5930 with targets at 1.5945, 1.5980, and 1.6000. Bearish selling is expected below 1.5840 with targets at 1.5800. Selling is likely to accelerate below 1.5800 towards 1.5750 and 1.5720.
To contact the author of this analysis, please email- [email protected]
The material has been provided by InstaForex Company – www.instaforex.com