- Cable has been trading in the 1.5800-1.5140 channel from May 2015, long-term bias remains lower
- A convincing breach below channel support at 1.5140 will put bears in control, the pair could slip to 1.4855 levels
- However, Stochs on daily charts are in oversold, short-term bounce could ensue, with initial targets around 1.52 levels and further at 1.54 levels
- Cable continues to benefit from the improving risk-on moods and also from solid economic growth confirmed in the UK
- UK’s GDP came in at 0.7% q/q in Q2, while the current account deficit narrowed to GBP 16.8 billion, down from a revised deficit of GBP24 billion in Q1
- US ADP employment report and the Chicago PMI will influence GBP/USD, Yellen’s speech will be also closely eyed for cues
- Immediate resistance is seen at 1.5208 (Sept 29 High) above which gains could be extended to 1.5243 (Sept 28 High)
- On the flip side, support is seen at 1.5140 (channel base) and then at 1.5126 (Sept 29 Low), below which it could extend losses to 1.5100 levels
Recommendation: Good to buy dips around 1.5150, SL: 1.5130, TP1: 1.5200, TP2: 1.5220
The material has been provided by InstaForex Company – www.instaforex.com