The rising wedge continuation pattern achieved its full projection target around 1.5490.
This week, there's slowdown in bullish acceleration witnessed at supply zone and located between 1.5500-1.5550 which corresponds to 50% Fibonacci Level and the upper limit of the depicted bullish channel. Hence, it's expected to have some bearish retracement.
Although the bullish steam seems to weaken on trading above the 100-day SMA and Fibo 50 level, the cable has its way open towards 1.5650 corresponding to 61.8% Fibonacci Level.
Resistance levels : 1.5650 and 1.5850.
Support levels : 1.5380, 1.5230 and 1.5030.
The cable has dependable demand level around 1.5365 which will probably provide a valid BUY entry on the next bearish retracement.
Other minor demand zones are located around 1.5500 then 1.5430 which have been established by the bulls last Friday.
If the bears manage to defend the supply zone at the upper limit of the channel at 1.5590 that was established yesterday, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
Fundamentally, construction sector activity in the UK improved during the month of April at a better rate than was expected. However, has remained in the contraction zone for the sixth month in a row, according to industrial data released Thursday. Depending on the release of this data, the cable gained some profit by 0.12% to trade at 1.5574 level.
That's why approaching 1.5650 isn't excluded at the current time before further retracement.
