The cable hold the 50Dsma managed to close with 0.6% gains at yesterday's session. The weak US dollar provided bullish moves on the pound. The USD weakens against the majors.
Today, traders eye on the UK trade balance. We expect trade deficit to narrow in April. The recent expansion in the eurozone will support the UK exports.
Technical analysis: The cable has been trading in a falling bearish channel. If we look back, the cable and the EUR/USD started falling after a sharp rally 3 weeks ago. The euro broke the bearish channel and moved towards higher highs and higher lows. But the cable is still moving in a bearish channel. The cable set its course to higher lows in the H1 chart. At yesterday's session, we forecast weakness in the USDX. With support from USD, the cable is likely to breach the falling channel. Tomorrow, BOE governor Carney's speech is due. We expect bullish trade after the event.
In the H1 chart, the cable has been forming higher highs. In the four-hour chart, double bottom formation has been taking place. Until bulls hold the 1.5170, bullish views remain in play. With the help of these factors we recommend bullish vision with sl 1.5170. Today, the cable is likely to touch 1.5380 and 1.5405. We recommend buying with sl 1.5290 on an intraday basis, positional sl is found at 1.5170. Intraday resistance is seen at 1.5365 and 1.5425. The trend-change level remains at 1.5445. Strong bullish momentum looms above 1.5460 towards 1.5520 and 1.5700 initially. Pound bulls lost the support at 200D&ema. The same levels are acting as strong resistance. In case bulls manage to take it off, they will aim at 1.5700. On the down side, bears will get the control below 1.5150 with an initial target at 1.5090. The real panic situation looms below 1.5085. Intraday selling is available below 1.5290 with targets at 1.5265 and 1.5230.
Trade: Buying with sl 1.5290 target 1.5380 1.5405 1.5420 1.5440
Selling below 1.5290 target 1.5265 and 1.5230
Safe buying above 1.5380
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