The cable witnessed a rapid fall towards 1.5025, breaking the corrective uptrend line which came to meet the pair around 1.5150, then support zone around 1.5000-1.5020.
Last week, while the pair was consolidating near support area extending down to 1.4830 (the low of March), strong bullish price action was expressed as expected to push the pair again above 1.5050 recording a high at 1.5220 when the pair expressed some bearish rejection towards 1.5050 again.
This week, the cable has been trying to breakthrough and consolidate above 1.5180 reaching up to 1.5279. Moreoever, yesterday the pair expressed daily closure at 1.5225 (above 1.5200).
This is considered to be a bullish breakout off the previous range 1.5050-1.5180. Projection target is located around 1.5330 (near SMA 100 depicted on the chart).
Stepping above 1.4950-1.5000 (channel breakout) took place last week allowing for further corrective movement towards 1.5180 to take place.
Price Level 1.5180-1.5200 constituted a strong supply zone which was breached on Wednesday. This rendered 1.5200-1.5180 a valid BUY entry on retesting with SL located below 1.5100.
On the other hand, bears need to break down 1.5030 (significant demand zone) in order to collect sufficient bearish pressure for further lower targets.
Price action should be watched around 1.5280 (50% Fibonacci) as it is the next siginificant supply level for the pair. It is important to note that the projection target of this bullish breakout is located around 1.5330.
Fundamentally, official data showed on Friday issued drop in net British public sector borrowing lower than expected during the last quarter of the year which is better than expected.
