The cable was rejected at the resistance zone pausing its 2-week winning streak. Today, the cable opened with a gap down hitting a low of 1.5665.
Weekly events: The week started with muted data. We have a number of high-impact data releases to look forward to, starting with the UK current account and final GDP q/q release. Data on manufacturing PMI and construction PMI is due on Thursday. Readings for the serves PMI are expected at the end of the week.
Technical analysis: The weekly supply zoneis seen around 1.5800 100Wema, 1.5870 200Wsma, and 1.5950 200Wema. The weekly support is found at 1.5650 50Wsma. In case bulls lose 1.5650, the other supports will be found at 1.5600 and 1.5530. Fundamental and technical aspects support the bullish view on the cable. The cable managed to breach the falling bearish channel in the hourly chart. Today, the cable took the support at the upper falling trendline.
Intraday: The cable formed a double bottom at 1.5665 after the opennig bell. Support is found at 1.5650. The ongoing situation favours buying with sl 1.5650. The double top was formed at 1.5770 in the H1 chart. Intraday resistance is seen at 1.5730 and 1.5780. The selling opportunity will arise below 1.5650 towards 1.5600 initially and 1.5550 later. Buying is available above 1.5780 with targets at 1.5800 and 1.5830. In case of a daily close above 1.5800, bulls will aim for 1.5870, 1.5900, and a new high of 1.5950.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
