The cable pauses a 3-week losing streak and managed to reclaim 2-week losses last week. The cable took support from 20Wsma and it is trading above a 2-week high. This is the first weekly gain in June. The weaker USD supported pound bulls to close above the crucial level of 1.5440.
Amid meaningful data, we can expect the pound sterling to make wild moves. Today is a quiet day in terms of data. Today's trade depends on the US data. Traders are awaiting a series of data on Tuesday such as CPI on an annual basis followed by PPI input and RPI. Wednesday and Thursday are loaded with data both on the UK and US.
Weekly view: On a positional basis, we remain bullish, but we could turn bearish only below 1.51700. As we expected, bulls managed to close above 1.5440 and 1.5550. We have been recommending buying with sl 1.5170 and targets at 1.5440 and 1.5700. The cable managed to close above 20Wsma 1.5190 for two weeks in a row. The cable closed above all the daily moving averages. These factors added power to euro bulls to make 1.5700 and 1.5740.The weekly resistance seems at 1.5740 and 1.5800. The trend favours buying on dips with sl 1.5170. Last week, we predicted 1.6000 initially. We still favor this scenario. The weekly support is set at 1.5425, 1.5350, and 1.5260.
Intraday: Intraday resistance seems at 1.5630, 1.5650, and 1.5700. Support is found at 1.5530, 1.5500, and 1.5470. On the H1 chart, we can find mild negative divergence. Before a further upmove, we expect the cable is likely to retest support at 1.5400 . An intraday high is likely to be printed between 1.5630 and 1.5650. Use a dip to buy. Or you can buy above 1.5600 with targets at 1.5620 and 1.5650.
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