Technical view: The cable moved above a 5-month high. A couple of facts have been supporting the pound in moving higher. The cable made a high at 1.5815. Today at the Asian session, the pound is trading at 1.5762 compared to 1.5775 Thursday’s closing against USD. In the four-hour chart, higher highs and higher lows formation are expanding. At Wednesday’s session, we recommend fresh buying above 1.5715 (like 1.5830, 1.5860, 1.5900, and finally 1.5975). The cable made a high at 1.5815. In the daily chart, the cable managed to close all the moving averages in all-time intervals. The cable has been trading with big gains for the second consecutive week. The nearest resistance is seen at 1.5835 100Wema and 1.5865 50Wsma.
Key support: 200Dsma 1.5620 200Dema 1.5545.
Intraday view: We expect profit booking at 1.5800/1.5830 and retest towards the support at 1.5560. We expect a near-term top to be placed this week, as 1.5815 high was printed. We expect the cable to test the levels of 1.5550/1.5500. In the hourly chart, the price made a double top at 1.5815. For an intraday view, resistance is seen at 1.5780 and 1.5815. Support is found at 1.5740. Today, multiple trading opportunities are likely to arise. We recommend safe selling below 1.5730. Small trade is available for bulls. Buy above 1.5780 with small targets at 1.5800, 1.5815, and 1.5830.
Trade: On the bullish front, safe buying is above 1.5770 with targets at 1.5800 and 1.5830. We recommend selling below 1.5720 with targets at 1.5700 and 1.5660.
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