The UK labor data became the driver growth for the pair. The unemployment rate has fallen to 5.3% that was the lowest indicator for the last seven years. The RICS housing prices balance was published the other day which came out better than expected - 49%. There forecast was 45%.
Practically the whole week the British pound was correcting from the support level of 1.5040. Despite the reduced volumes, buyers have broken through two strong resistance levels of 1.5150 and 1.5200.
The price is finding the first support at 1.5200, the next one is 1.5150. The price is finding the first resistance at 1.5300, the next one is at 1.5390.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
We believe the growth will be continued now. The first target is the level 1.5300. The approach to the level of 1.5300 may lead to a price rebound down. The potential rebound targets are the support levels of 1.5150, 1.5100.