This calendar week stocks lots of important economic events which can greatly affect the pair in the near term. Today, the UK manufacturing data and the US ISM manufacturing data will drive the pair. We are expecting an uptick from the UK manufacturing data. On the previous week, the cable mostly lost its gain and closed marginally up. The pair has the nearest support at the 1.5590 levels. In case if the cable closes below 1.5500 on a weekly closing basis, we can expect 250 odd pips correction on the downside in the medium-term view. The pair has strong, longer-term support at 1.5500. Below 1.5500 levels, 1.5429 and 1.5300 are the other support levels.
From an intraday view, the prices are closed and trading below 12DEMA. But the 35DEMA is providing enough support exists at 1.5625 on an hourly basis. On the higher side, 1.5670 will act as a resistance level. In case if the pound falls below 1.5625, the last hope for bulls exists at the 1.5590 levels. In case if the pair corrects below 1.5590, again the selling pressure will increase. The panic will be triggered below the 1.5590 level. The trading pattern is framed between the 1.5590 and 1.5736 levels. In case if the prices break below 1.5590, we expect the targets of 1.5535 and 1.5510. Below 1.5500, another 100 or 150 pips downside move or risky traders can sell at the current market price at 1.5629 levels.
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