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 1.5015.
Previous consolidation range above 1.5200 was broken down when we had daily closure below 1.5190. 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 so far.
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. Moreover, the nearest support around 1.5000 can potentially delay occurence of a lower buttom.
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5030,1.5030, and 1.4975.
Fundamentally, the pound is rising slowly against the U.S. dollar in quiet trade today, caused by the holiday in U.S. and British banks.
Last week, 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). Hence we expect 1.2000 to provide another chance for sellers acting as a strong supply zone.
Although the pair stepped below the lower limit of the 4H channel at 1.5075, it came back again inside the channel which will probably push the pair again towards 1.5190-1.5200.
Breakthrough above 1.5200 invalidates the bearish scenario in the short-term expressing a bullish breakout with targets at 1.5340 potentially.
