The cable has been extending losses for 5 consecutive days. At yesterday's session, the cable drifted below 100Dema, but close above that at the end of the day. The pair has been hovering at 10Dema for 2 days.
The UK GDP was estimated to increase by 0.3% in the first quarter of 2015, unrevised from the previous estimate of GDP published on April 28, 2015. Besides, US unveiled strong data.
Today does understandably a quiet day on the markets owing to lack of macroeconomic data. We have a number of high-impact US data releases to look forward to, starting with the US prelim GDP q/q.
Technical view: Ahead of today's major US data, the cable is trading at 1.5320 compared to Thursday's closing price of 1.5315. It lost 1.4% over this week. The weekly support is found at 1.5150 20Wsma. Monthly gains turn to losses. The cable lost more than 3%. On a monthly basis, resistance at 1.5555 looks strong. In the H1 and H4 charts, lower lows and lower highs formation is expanding. Today's close will provide clear picture for the near term.
Intraday support is found at 1.5300 and 1.5250. We recommend safe selling 1.5240 with targets at 1.5200/1.5190 and 1.5150.The selling pressure is expected below 1.5300, a stronger pressure is likely to take place below 1.5240. Risky traders can sell below 1.5300 with an immediate target at 1.5250. In case the US GDP misses the forecast, the pound bulls will aim at 1.5400 initially and at 1.5470/1.5500 later. In this case, buying is available above 1.5350 with targets at 1.5385 and 1.5400. In the extreme case, bulls are likely to aim at 1.5440 and 1.5470. There is a small probability of short covering ahead of the weekend.