Cable is consolidating around 1.57 levels as the rally in Chinese equity markets stabilized the risk sentiment and supported the US dollar
- Rebound in the pair was capped at 1.5721, skeptical if cable can hold its gainsSlow stochs are easing from overbought levels, reinforcing scope for further weakness
- GBP/USD is currently trading at 1.5687, with immediate resistance at 1.5732 (30 DMA Upper Bollinger)
- Support on the downside is located at 1.5682 (Daily Low Aug 25), break below could take the pair to 1.5676 (200 HMA)
- US July durable goods data, due later in the day could affect Fed's Sept rate hike bets and the overall demand for the US dollars
Recommendation: Good to sell rallies around 1.5700, SL: 1.5735, TP1: 1.5670, TP2: 1.5600
Resistance Levels:
R1: 1.5732 (30 DMA Upper Bollinger)
R2: 1.5820 (Daily High Aug 25)
R3: 1.5831 (Daily High Jun 23)
Support Levels:
S1: 1.5682 (Daily Low Aug 25)
S2: 1.5676 (200 HMA)
S3: 1.5630 (Daily Low Aug 24)
