Cable continues to rise pushing prices above 1.56. Yesterday’s release of a positive U.K Manufacturing Production m/m data sent prices soaring to a high of 1.5690. Paying attention to the Fibonacci Retracement, the next exhaustion level to note lies at 50.0% at 1.5888. With the release of U.K Claimant Count Change and BOE Inflation Report later in the day, prices may be given an additional boost to the current bullish uptrend.
Observing the H4 chart, candles were observed to find exhaustion at Fibonacci Expansion 141.4% at 1.5701. A retracement is expected due to uncertainty in the market before the various data release later and minimal movements is expected before the data releases. Moving averages remain highly upward sloping, indicating a strong bullish trend. Should candles continue on the bullish run after the various data release, the next exhaustion level lies at Fibonacci Expansion 161.8% at 1.5789.
Focusing on the hourly chart, aggressive intraday traders may look for re-entry of a longing position at the price region between 1.5597 and 1.5638 before the news release should candles show signs of support. However, if candles were to close below 1.5597, longing is not advisable and traders should only await to trade the impulse of the news release later.