The pound fell after the US existing home sales data report. The pair was influenced by yesterday's home sales report and selling pressure acceleration.
It lost 0.5% trading below 100Wema, but it managed to hold support at 1.5680 50Wsma. The cable rejected at 50Msma in the previous week. We have been advising cautious for more than 3 days. The cable approached the strong supply zone between 1.5930 and 1.6040. In case of a daily close above 1.6050, bulls are likely to gain another 150 and 250 pips. The monthly resistance is seen at 1.5935 50Msma". Now, the level of 1.5709 is done. This week, US housing data pushed the pound down against the greenback.
The support is found at 1.5700 and 1.5680 50Wsma. A litmus test takes place at 1.5680, a daily close below this level will lead to a test of 1.5620 and1.5500. Data on BBA mortgage approvals and US GDP on q/q is due today. Today's trend depends on US economic data. We expect the outlook for the US GDP to be positive. Before moving up, the pair is likely to re-test 1.5540 and 1.5500. Resistance is seen at 1.5750, 1.5805, and 1.5820. Selling on rises with sl 1.5850 looks preferable. Fresh selling is advised below 1.5680.
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