The rising wedge continuation pattern achieved its full projection target around 1.5490.

This week, the cable is meeting a significant supply zone located between 1.5500-1.5550 which comes to meet 100-day SMA and the upper limit of the depicted bullish channel. Hence, it is a zone of strong resistance which will probably pause the bullish movement looking for some bearish retracement.

Although the pair is trading slightly above the 100- day SMA, the bullish steam seems to fade away which is manifested in the "inverted hammer" daily candlestick which is an early indicator for possible retracement.

The cable has dependable demand level around 1.5365 which may provide a valid BUY entry on the next bearish retracement. Another minor demand zone is located around 1.5430 which has been established by the bulls last Friday leading towards 1.5550 as expected. Today, there is an established Supply Zone located at the upper limit of the channel 1.5530-1.5545. In case of its stabilization, the bearish momentum will be targeting 1.5430, 1.5365 then 1.5200. Fundamentally, the amount of currency in circulation and deposited in banks in the UK fell unexpectedly during the previous quarter. Also, the lending index fell in Britain more than expected during the month of March according to the official data released today. This data supports the short-term bearish view mentioned above.