The pound sterling gained 70 pips at yesterday's session after soft US data and stronger UK data. November’s survey of the UK service sector indicated strengthening of activity growth amid reports on firm demand and rising volumes of new business. A rise in the index to 58.6 from 56.2 in October, pointed to a marked and accelerated rate of expansion that was well above the survey’s historical average. This makes an optimistic outplook for the UK's economy in the near term. On the other hand, the US dollar is trading at multi-year highs on a strong demand. Today, the focus has shifted to the US unemployment claims and BoE interest rate decision. Ahead of the major economic data, the cable is trading with a mild bullish tone. The pair has been facing strong resistance at 20Dsma for 7 days. The cable has support at 1.5630 on a daily a closing basis. In case if the cable closes below 1.5630, we can expect a 150-pips fall on the down side. Until the prices are closed and trading below 1.5764 (h4 candle), we can expect 1.5525 on the downside within the strong support zone existed between 1.5630 and 1.5585. From an intraday view, the prices are consolidating between 1.5679 and 1.5710 levels. We recommend selling below 1.5660 levels.
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