Cable hit the upper limit of the upward channel on Monday and reversed direction after staging a evening star doji candle pattern. The downward move was stopped by the lower limit of the channel, 50% retracement of previous week swing high and low and 365 EMA.
The unexpected simultaneous selloff in US Dollar and equity market on Thursday carried cable on the way up breaching the previous high and by the end of the week it met the target resistance at 38.2% above previous week’s high at 1.5225.
Last week, after managing to penetrate the 1.50 level cable encountered little resistance to touch 1.52 level.
For the upcoming week, cable is expected to move upward with the upper limit of the ascending channel act as a barrier. Support is at 1.50 and the previous low at 1.4873. On the upside resistance is at 1.536 with the next resistance at 1.544.
