The cable has slipped back after failing to break resistance level at 1.5377 and is moving downwards to test interim support level at 1.5300. The support level around 1.5300 is likely to block further weakness and a and bring rebound towards higher levels as the sterling is set gain against a weaker dollar.
- To the upside, the strong resistance can be seen at 1.5377, a break above this level would expose the cable to next resistance level at 1.5481.
- To the downside immediate support can be seen at 1.5300, a break below at this level will open the door towards next level at 1.5275.
Recommendation: Go long above 1.5300, targets 1.5370, 1.5430, SL 1.5260
Resistance Levels
R1: 1.5377 (50% Retracement level)
R2: 1.5413 (September 8th high)
R3: 1.5481 (38.2% Retracement level)
Support Levels
S1: 1.5300 (Psychological level)
S2: 1.5275 (61.8% Retracement level)
S3: 1.5217 (Oct 7th lows)
