Finally, the cable gave an upside breakout of the trading range between 1.5590 and 1.5737. At yesterday’s session, the pound gained almost 100 pips and closed at the highest point. The pair has resistance at 1.5810 or 20Dsma. As of now, today the pair is unable to breach previous day’s high. The mixed US data made the US dollar down against most of the pairs. As of now, on the weekly chart the cable formed a double bottom at 1.5590. In case if the cable holds 1.5590, the double bottom can turn to a triple bottom on the weekly chart. In case if this happens, we can expect some technical bounce towards 1.5810 and 1.5880. We recommend fresh buying above 1.5810 with the targets at 1.5850 and 1.5880. At yesterday’s session, we recommended buying at 1.5740 with the targets at 1.5770, 1.5800, 1.5850, and 1.5880. We gained 60 pips in an intraday session. We are giving the same recommendation today as well. Traders who bought yesterday session, move your stop loss to 1.5770. On the down side, the pair will face selling pressure only below 1.5735. So, we recommend selling below 1.5735 with the targets at the 1.5679, 1.5655, and 1.5630 levels.
Fresh buying above 1.5810.
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