The cable gave a strong momentum after 2-day fall. The pair edged lower after testing 1.4981 and time frames look negative for the pair, with a possible double top pattern forming on the H4 chart, with tops at 1.4995. The 1.5000 mark looks hard for bulls to breach that. At yesterday's session, the cable erased half of its intraday gains managed to closed above 2Dsma. The price has been consolidating at lower levels for 5-weeks. In November 2014, the cable had been consolidating for six weeks and gave a downside breakout. We are just one week far to see a change in the trend. In case the price closes above 1.5000 bulls can challenge 1.5100, 1.5165, and 1.5235. Intraday and intra-week pattern favors bears. The intra-week key level is found at 1.4740. In case the price closes below this level, it can conclude at 1.5000 in the near term and gates are open for 1.4635 and 1.4500. Eventually, the pound looks weak against USD. The UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. For an intraday session, the support is found at 1.4850 and 1.4800. Today, traders eye on the US unemployment claims and UK interest rate decision. If case of positive readings, we recommend selling below 1.4850 with targets at 1.4800 and 1.4740. Panic will be triggered below 1.4740 towards new lows. In case of negative readings, we recommend buying above 1.4900 with targets at 1.4930, 1.4965, and 1.4995. Big move is likely to take place above 1.5000.
Trade: Selling below 1.4840
The material has been provided by InstaForex Company - www.instaforex.com
