"The British construction sector activity improved slightly during the month of May supported by strong activity for the residential construction sector, according to data released by the economic Foundation "Market". However, economists still expect the sector to remain within the scope of the shrinkage."
The pre-mentioned double bottom pattern was confirmed last week when we had daily closure above 1.5150.
Thursday's daily candlestick closed also above strong resistance level 1.5200 which threatened the ongoing bearish momentum.
Today, the cable exceeded 1.5320 (high of May 16). However, it is finding supply (resistance) around 1.5365 which corresponds to SMA-100.
Breakout of the bearish channel above 1.5150 confirmed the double bottom and opened the way up to 1.5200 immediately.
As expected, price Level 1.5150 provided a valid BUY opportunity last Friday. It is running in profit now.
Price Level Fibo 61.8% expressed significant bearish price action which lead to 4H closure below Fibonacci 50%, this will probably open the way towards 1.5235 for retesting.
Price action should be watched around 1.5235 for a possible BUY entry with SL located below 1.5140.
Breakthrough above 1.5360 (Fibonacci 61.8%) opens the way for a higher desitnation for the pair towards 1.5460 initially.
