After the FOMC meeting, the pound edged lower against the greenback, made a triple top at the level of 1.5700.
"Federal Reserve officials face a conflict as they plan to start raising interest rates later this year: There has been a lot of progress in their goal for U.S. job growth, but little in their objective of modestly rising consumer prices," Jon Hilsenrath writes in his article.
The Fed kept the interest rates unchanged at 0-0.25%. The US economic activity sligtly grew, employment rose higly, and the unemployment rate fell.
Today, traders keep an eye on the data on the US advance GDP on a quarterly basis and unemployment claims. Besides, the Spanish flash CPI and GDP reports are due to be released today too. We expect optimistic data from Spain, but the trade remains influenced by the US statistics.
Technical overview:
The cable erased its intraday gains breaking the winning streak and closed with losses. We advised selling on rises until the cable closes above 1.5700.
At yesterday's session, the cable changed the direction and reached a high at 1.5690. On a daily closing basis, the cable made a double top at 1.5615. The supply zone is places at 1.5675 and 1.5700.
Earlier, the cable formed a strong ceiling at 1.5700. It broke the 3-month ascending trendline, but is still trading below this level. In the four-hour chart, the cable fell below the bearish h&s pattern.
The 20Dsma is found at 1.5550, 100Dema is seen at 1.5460, 200Dsma is found at 1.5410, 20Wsma is found at 1.5340, and 100Dsma is seen at 1.5320. The weekly trading pattern is framed between 1.5440 and 1.5700.
Intraday resistance is seen at 1.5630, 1.5675, and 1.5700. Support is found at 1.5580, 1.5560, and 1.5540. At yesterday's session, we advised buying above 1.5630 with a target at 1.5650, 1.5675, and 1.5690. The cable is likely to reach ahigh of 1.5690.
The same buying strategy is valid today. Buy above 1.5630.
Fresh selling is available below 1.5530 towards 1.5490 and 1.5470. The selling accelerates only below 1.5440.
Whenever the cable touches the zone of 1.5675 and 1.5700, it will reach lower lows. This time, we can expect 1.5450 or 1.5410 to be hit.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
The material has been provided by InstaForex Company - www.instaforex.com