Last week, the cable managed to close above 50Dsma. On the daily chart, the cable gave an upside breakout from the falling bearish channel. The weekly resistance exists at 1.5570. The UK's inflation stood at 0.5% in December 2014. The main reason for this was the steepest fall in wholesale energy prices during the second half of the last year. The decline in the energy prices helps the BoE keep interest rates at the record low of 0.5%. Traders are keeping an eye on tomorrow's CPI data. The British Pound looks weak against the stronger US dollar. The pair has weekly support at 1.5340 and 1.5180. The panic selling will be triggered below 1.5190 towards 1.5140 , 1.5100, and 1.5000. In case if the pair corrects towards 1.5350 and 1.5290, use this opportunity to buy with sl at 1.5190. On the monthly chart, the previous supports are between 1.4830 and 1.4800. We recommend selling below 1.5180, sell with the targets at 1.5140, 1.5100, and 1.4990.
The material has been provided by InstaForex Company - www.instaforex.com