Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week especially on Friday.
Previous consolidation range between 1.5230-1.5360 is being tested this week with expectations to provide support for the pair as it forms a confluence of support with the lower limit of the ascending channel depicted on the chart.
By breakdown of the lower limit of the channel at 1.5360, the cable has its way opened towards 1.5230, the lower limit of consolidation range.
Resistance levels: 1.5580, 1.5650 and 1.5850.
Support levels: 1.5370, 1.5230, and 1.5030.
A double top reversal pattern was confirmed with 4H closure below 1.5480, then quickly the bearish momentum targeted 1.5430, 1.5365 then 1.5315.
The current price zone 1.5330-1.5360 corresponding to the lower limit of the channel seems to be rejecting the bears. In case of its stabilization, the cable will target 1.5400 then 1.5470.
Breakdown of the most recent low at 1.5310 resumes the ongoing bearish momentum without retracement which is somehow excluded today.
Fundamentally, the market may witness some weakness in movement until data about Monthly retail sales is released from the UK. The expected reading is less than in the previous month. However, the market may not react to it as it has been contained in last week's price fall.