The rising wedge continuation pattern achieved its full projection target around 1.5490.
This week, there's a supply zone located between 1.5500-1.5550 which corresponds to 50% Fibonacci Level and the upper limit of the depicted bullish channel. Hence, it is the zone of strong resistance which will probably pause the ongoing bullish movement for some bearish retracement.
Although the pair is trading above the 100- day SMA and Fibo 50 level, the bullish steam seems to be fading away which is manifested in the "inverted hammer" daily candlestick which is an early indicator for possible retracement.
Resistance levels : 1.5650 and 1.5850.
Support levels : 1.5380, 1.5230 and 1.5030.
The cable has dependable demand level around 1.5365 which may provide a valid BUY entry on the next bearish retracement.
Other minor demand zones are located around 1.5500 then 1.5430 which have been established by the bulls last Friday.
If the bears manage to establish a Supply Zone at the upper limit of the channel at 1.5590, the bearish momentum will be targeting 1.5430, 1.5365 then 1.5200.
Fundamentally, Activity in the manufacturing sector in the UK has improved during the month of April, but is still confined in a narrow range for the third month in a row as illustrated by industrial data released today. This may contribute to hinder the bearish retracement scenario for sometime.