Last week, strong bullish pressure was applied at retesting 50% Fibonacci, resulting in bullish engulfing candlestick extending further above 1.5400 (61.8% Fibonacci). This opened the way directly to 78% Fibonacci around 1.5550 which constituted temporary intraday resistance that held price below for 5 days before bullish breakout took place on Thursday.
The cable established ascending bottoms around 1.4800, 1.5100, 1.5210 and recently 1.5420 supporting the ongoing uptrend depicted on the chart.
Key Supply Zone is located up near 1.5750 and would be a clear target area for anyone buying this market this week.
Key demand levels are located around 1.5555 and 1.5420 respectively. We can watch for price action around support to get back in-line with the uptrend.
Based on the chart above, the cable has been trending up within the depicted ascending wedge, the upper limit of which is being tested around 1.5690-1.5700 showing overbought state of the pair.
Bearish pressure may be applied to visit the minor uptrend line located around 1.5560 with a possibility for a breakdown to take a deeper retracement towards the major uptrend line depicted on the chart. However, none of this will happen untill the bears manage to break below 1.5600 early this week.
Breakthrough above 1.5690-1.5700 will result in immediate visit towards 1.5750 mentioned on the daily chart.
