Important key resistance at 1.5400 is located on the daily chart corresponding to 61.8% Fibonacci Level extending up to 1.5440, previous daily high.
This upcoming resistance was expected to put some bearish pressure leading towards some bearish retracement which already reached 1.5290 (50% Fibonacci). However, Thursday's bullish engulfing daily candlestick, the low of which hardly touched 50% Fibonacci Level around 1.5285, is considered a threat to the bearish retracement scenario.
The cable established ascending bottom around 1.5150 and ascending top 1.5265 supporting the ongoing bullish bias for the pair.
As long as these structures remain unbroken within the depicted consolidation range, 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 the previous top where a valid BUY entry was suggested in previous articles.
The market is expressing one of two scenarios now, the first one:
-A continuation flag pattern that requires solidation of 1.5265-1.5300 to push higher towards 1.5540.
-Ongoing double top that requires breakdown of 1.5265 to be targetting 1.5110 initially.
Fundamentally, the market is waiting for important data this week such as Wednesday's FOMC meeting and GDP report, and Friday's NFP report for July.
The cable also has important economic events such as the BOE latest policy decision for August. Any forward guidance mentioning may lead to bearish pressure on the pair.
