- The cable has slipped back sharply in the European session after Britain’s CPI figures came negative, in the due course the pair has broken support level at 1.5263 and is approaching to test next support level at 1.5204. A breakout at 1.5204 support level will unleash a strong bearish momentum which may drag the pair all the way towards 1.5100 levels. the pair is expected to decline further towards lower levels ,as the US dollar is set to strengthen against sterling in the coming sessions, therefore it’s good to sell this pair on rallies.
- To the upside, the strong resistance can be seen at 1.5316, a break above this level would expose the cable to next resistance level at 1.5370.
- To the downside immediate support can be seen at 1.5204, a break below at this level will open the door towards next level at 1.5162.Recommendation: Go short below 1.5315, targets 1.5250, 1.5200, SL 1.5380Resistance LevelsR1: 1.5263 (38.2% Retracement level)R2: 1.5316 (50% Retracement level)R3: 1.5370 (61.8% Retracement level)Support LevelsS1: 1.5204 (23.6% Retracement level) S2: 1.5162 (Oct 4th lows)S3: 1.5103 (Sep 30th lows)
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