The UK services PMI rose more than forecasted to 58.6, but down compared to previous month 58.7. Overall the UK services sector gave an upbeat in the economy. Today traders will eye on BoE interest rate decision.
The cable has been rejected from the 50 day SMA. On the down side, the pair has support at 1.6693 (May 29, low) and 1.666 levels. The panic button would trigger below 1.666 and it the pair is likely to extend its fall to 1.6620, 1.66, 1.6554 and 1.6465 levels. Traders do not need to worry until the pair breaks the 1.666 level. Until the pair closes above the 50day SMA, the bears will have an upper hand. On the upside, the initial resistance is between 1.6770-1.6780. Above these levels, it is seen to fly up to 1.68 and 1.6815. On a positional basis, the cable favors selling on rallies. The weekly RSI supports my view.
In Asia's session, the cable is trading at 1.6744 levels and is facing resistance at 1.6758 and 1.6770 (50hour SMA) levels. The cable would gain some strength only above 1.6782 levels. If the pair crosses it, it is seen to spike up to 1.6825. On the down side, the pair looks weak below 1.6734 level. It has support below 1.6734 at 1.6726, 1.67 and 1.6690 levels. It would fall to the 1.666 level below 1.6690.
