The cable has been sustaining losses for the third consecutive week. The weekly support 20Wsma 1.5170 managed to close with mild losses.
Owing to lack of macroeconomic data, it is understandably a quiet day today. We have a number of high-impact data releases to look forward to, starting with the UK manufacturing production followed by the BoE Governor's speech.
Technical view: The pair has been trading in a falling bearish channel for more than a month. The weekly support is found at 1.5170. Until the pair holds that level, bulls will try to grab the control. The weekly resistance is seen at 1.5520. The monthly support is found at 1.5089. A breakout below this leads to 1.5000 and 1.4950 initially. Later it is likely to expand to 1.4850 and previous lows. On a positional basis, we remain bullish, but we could turn bearish only below 1.51700. Bulls must close above 1.5550 as soon as they can. At least, they need to close above 1.5440 this week to erase the bearish view of 1.4500.
Intraday view: The cable is trading at 1.5273 compared to Friday's closing price of 1.5270. Intraday support is found at 1.5250 and 1.5190. Bulls' last hope remains at 1.5170. Intraday resistance is seen at 1.5285 and 1.5300. Trend-deciding level lies at 1.5450. The earlier previous swing low at 1.5440 acts as strong resistance. Strong momentum is found above 1.5450, panic will emerge below 1.5170. Safe buying is expected above 1.5330 with targets at 1.5370/1.5380 and 1.5440. Fresh buying and short covering will be added above 1.5450 at 1.5700. Quick risky trader is available for bears below 1.5250 with a target at 1.5200. Safe selling is available below 1.5170 for 1.5110/1.5100. Real panic will be triggered below 1.5089.
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