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 was trending up within the depicted ascending wedge, the upper limit of which around 1.5690-1.5700 provided significant supply supported by the overbought state of the pair.
Bearish pressure was applied to visit the minor uptrend line located around 1.5560 which was broken down opending the way towards 1.5540 (78% Fibonacci Level and a previous broken top).
Price Level 1.5540 is a prominent target for the sellers off 1.5690 where bullish pressure may be applied. That's why price action should be watched there for a possible BUY entry with SL located below 1.5500.
Breakdown of 1.5560 will probably enables the bears to push towards 1.5415 initially.
