Consolidation above the previously broken uptrend line goes on this week too after the pair expressed bullish breakout above consolidation range between 1.5050 and 1.5200.
The weekly candlestick came bullish for the 2nd week in a row closing at 1.5264 after the pair found strong demand at 1.5050 corresponding to the lower limit of congestion zone.
The next supply zone is located around 1.5400 (previous top established on 12nd of April) where price action should be watched.
The congestion zone is more obvious on the 4H chart where a bullish breakout above 1.5200 took place last week.
Since then, the cable established ascending bottom 1.5150 and ascending top 1.5265 supporting the ongoing bullish bias for the pair. As long as these structures remain unbroken, the bulls would remain in control of the market.
Intraday demand zone is located around 1.5265-1.5300 which corresponds to 50% Fibonacci Level and previous top where price action should be watched carefully.
Fundamentally, the pound rose against the dollar to its highest level in three weeks, due to weak trading action on Monday after a meeting of the Group of Twenty, and statements about the easing policy, and how to deal with it in the current market conditions and beware of any negative impact on global growth recovery.
