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, today some bearish retracement towards 1.5480 initially is expected.
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.
Yesterday's daily candlestick confirms the weakness of the ongoing bullish impulse.
Resistance levels : 1.5650 and 1.5850.
Support levels : 1.5380, 1.5230 and 1.5030.
The cable has been consolidating within a consolidation range 1.5500 -1.5590 after testing the upper limit of the ongoing movement channel as depicted on the chart.
If the bears manage to defend the supply zone at the upper limit of the channel at 1.5590 that was established yesterday, thus confirming the H&S pattern with 4H closure below 1.5500, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
The cable has dependable demand level around 1.5365 which will probably provide a valid BUY entry on the next bearish retracement.
Fundamentally, there are many positive data released from the U.S. today including unemployment rate, this will favour the bearish retracement scenario mentioned above.
