The cable gained approx 100 pips in yesterday's trade. The UK manufacturing PMI gave an uptick to the pound sterling. Manufacturing production rose for the 20th successive month in November as well. As for the US dollar, the soft data weighed on the down side. The cable made a new low at 1.5586 and started moving upwards. The cable was restricted to 20Dsma at yesterday's session and closed below it. Today, the cable again was rejected at 20Dsma and is trading below it. Currently, the positional support level exists at 1.5643. The new bearish wave will appear in case if the prices are closed below 1.5643 on a daily basis. We can expect 180-pips fall in case the prices are closed below 1.5643. On a weekly basis, in case if the pair closes below 1.5500, we can expect 250 odd pips correction on the downside in the medium-term view. The pair has strong, long-term support at 1.5500. Below 1.5500, 1.5429 and 1.5300 are another support levels. From an intraday view, we recommend fresh buying only above 1.5765 levels. For bears, we are recommending selling below 1.5720. The hourly support exists at 1.5720 and intraday support exists at 1.5700 levels.
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