The cable has been extending the bull’s footprint for the second consecutive week. The current week’s macro data start on Tuesday. The CPI growth rate remains at 0 for 2 months. The recent fall in the oil prices is the major factor. On Thursday, retail sales and CBI industrial order expectations are due. The BOE governor Carney’s speech falls on Friday.
Weekly technical analysis: bulls managed to close above 20Wsma for the second consecutive week. The cable approached the resistance levels. The nearest resistance is seen at 1.5830 100Wema and 1.5860 50Wsma. Last week, we noted the cable waiting minor correction. The pound crosses have been correcting. We advised the near-term top to be placed between 1.5800 and 1.5830 and a retest towards the support at 1.5550 last Thursday and Friday. The last week’s high was made at 1.5815. As we expected, the cable shifted to a profit-booking mode. On a daily closing basis, bulls must close above 1.5775 to remain in play. Currently, we are still expecting the cable to touch 1.5600 or 1.5560 before moving up further. Weekly support is found between 1.5620 200DSma and 1.5550 200DEma.
Intraday technical analysis: Intraday support is found at 1.5700 and 1.5660. In the hourly chart, the cable made a triple top at 1.5815. Fresh buying is advised only in case the price erases the top. The bull’s key level to hold is the level of 1.5640. A daily close below 1.5640 opens gates for 1.5620 and 1.5550 even 1.5500. On the bullish front, small trade above1.5785 towards 1.5815, 1.5830, and 1.5860 can be expected. Bulls must close above 1.5775 or bears must close below 1.5640 to get a decisive move until the pair consolidates between 1.5830 and 1.5640. We request bulls to wait for small correction or start buying for 1.6000 and 1.6200 in case of a close above 1.5860.
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