Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week. It pushed the pair down to 1.5030.
Previous consolidation range above 1.5200 was broken down when we had daily closure below 1.5190 on Friday. Based on this bearish range breakout, the cable hit its projection target around 1.5060 then 1.5030 (4th of April's low) where some recovery is seen.
The bullish recovery pattern above 1.5020 is still valid, this favors one more upswing, for further testing of 1.5190-1.5200 supply zone.
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5030,1.5030, and 1.4975.
On Monday, there was a bullish trial to step again above 1.5200. However, the movement was stopped at 1.5275 (within the depicted short term bearish channel).
Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5010 which took place yesterday.
Although the pair stepped below the lower limit of the 4H channel at 1.5075, it came back again inside the channel which may bring back bullish strength to the pair towards 1.5120 then 1.5190.
Failure of the pair to remain above 1.5070 brings another bearish swing to the market towards 1.4830 low.
Fundamentally, the situation isn't decisive as the number of mortgage approvals by the British Bankers' Association rose but less than expected during the past month, according to industry data released today. However, it remains bullish unless 1.5070-1.5050 is broken down.
