Technically, on the daily chart the cable has confirmed a rising wedge continuation pattern with daily closure above 1.5260 which has a projection target around 1.5490.
Today the pair is meeting a significant supply zone located between 1.5460-1.5500 which comes to meet 100-day SMA on the daily chart. Hence, it is a zone of strong resistance which will probably pause the bullish movement looking for some bearish retracement.
On the 4H chart, the pair has dependable demand level around 1.5365 which may provide a valid BUY entry on the next bearish retracement.
Supply Zones: R1 around 1.5460, R2 around 1.5630, and R3 around 1.5830.
Demand Zones: S1 around 1.5200, S2 around 1.5030, and S3 around 1.4830.
Fundamentally, the cause of the strong bullish impulse witnessed today is the rise in the economic growth size in the United Kingdom more than expected during the first quarter in 2013, and this caused the country to avoid the risk of falling into in Triple recession, according to preliminary data released earlier today.
