- The cable slipped downwards in the European session after it failed to break resistance level at 1. the release of UK Manufacturing PMI which printed negative figures, more bearish pressure was applied, as a result the pair declined further to test support level at 1. cable has recovered some ground and has bounced back to trade above 1.5350 levels.
- Currently the cable is trading round 1.5356 levels, it is set to decline further towards 1.5300 later towards 1.5220 levels in the short term.
- To the upside, the strong resistance can be seen at 1.5435 (August 31st high), a break above this level would expose to cable to next resistance level at 1.5508(August 27th high).
- To the downside immediate support can be seen at 1.5305, a break below at this level will open the door towards next level at 1.5261 (50% Retracement Levels).
Recommendation: Go short below 1.5390, targets 1.5300, 1.5260, SL 1.5480
S2: 1.5261 (50% Retracement Levels)
S3: 1.5221 (50% Retracement Levels)
The material has been provided by InstaForex Company – www.instaforex.com