The cable managed to extend gains for the 3rd session in a row after the UK GDP figures had hit the wires.
Analysts are optimistic about the UK economy. The gross domestic product (GDP) is the main indicator of economic growth. The GDP is estimated to increase by 0.7% in the second quarter (Apr to June) 2015 compared with the 0.4% growth in the first quarter (Jan to Mar) 2015.
The Conference Board Consumer Confidence Index, which had improved in June, declined in July. The Index stands at 90.9 now, down from 99.8 in June. Ahead of the FOMC meeting, US economy delivered negative readings.
Today, traders eye the FOMC meeting. We expect impulsive moves during a day.
The cable managed to bounce from the swing support of 1.5450, encouraging bulls to close above the 20&50Dsma at yesterday’s session.
Earlier, the cable made a strong ceiling at 1.5700. It broke a 3-month ascending trendline. It is still trading below that level. In the four-hour chart, the cable fell below the bearish h&s pattern.
The 20Wsma is found at 1.5340, the 100Dema is found at 1.5450, the 200Dsma is found at 1.5410, and the 100Dsma Is found at 1.5300. The weekly trading pattern is framed between 1.5440 and 1.5700.
Intraday resistance is seen at 1.5635, 1.5675, and 1.5700. Support is found at 1.5590, 1.5560, and 1.5545. Selling is available below 1.5530 towards 1.5490 and 1.5470. Buying is available only above 1.5630 with targets at 1.5650, 1.5675, and 1.5690.
If bulls manage to hold the level of 1.5440, they will head towards 1.5600 and 1.5700. Bulls will come back on track only if they manage to close above 1.5700.
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