The cable tried to come out of the descending 2-month trend line the previous week. It succeeded to come out of that, but was unable to close above that. The cable held the strong support at 1.60 50MSma, as we recommended in our earlier articles fresh selling is only below 1.60. This view hasn't activated till now. The pair started moving to 20Dsma and closed above that. It represents some bullishness in the near term. In yesterday's session the pair gave a handful of 70 pips on the upside, closed at the highest level of the day. Today the pair opened above the previous closing level representing a strong opening, testing its fortune at 20Dsma. The pair has support at 1.6350, as of now, a low made at 1.6358. If the pair holds the 20Dsma and closes above the triangle, further bullishness will add to the pair. The cable has initial resistance at 1.64, above this, it can fly up to 1.6466, 1.65, 1.6524 and 1.6590. The pair has strong short-term resistance at 1.66 50Wsma. On the down side, it has support at 1.6350, 1.6284 and 1.6246 levels. The weekly momentum indicators are indicating a bullish sign.
Support 1.6350 1.6284 1.6246
Resistance 1.64 1.6465 1.65
For an intraday view, the prices are trading above the 12ema and 34hrsma. The pair has hourly support at 1.6350 and 1.6315, below this, 1.6280, 1.6246 and 1.6160 levels. Risky traders can buy with sl 1.6350 and safe traders, buy with sl 1.6315. Weakness will emerge below 1.6315 and panic will be triggered below 1.6280 levels. Buyers will mint the money in hourly trade.
The material has been provided by InstaForex Company - www.instaforex.com
