The pair is probably expressing 123 bullish reversal pattern that became confirmed with daily closure above 1.5625 that took place yesterday.
The cable is now challenging the significant uptrend peak at 1.5682 recorded last week while the next important resistance is projected at 1.5750 corresponding to 61.8% Fibonacci.
Intraday support is projected at 1.5380 (SMA 100). Price level 1.5580 (50% Fibonacci) was broken through yesterday.
Breakout of the bearish channel above 1.5150 confirmed the double bottom which initiated the ongoing bullish trend.
Due to acute bullish movement expressed last week, the cable did not establish any significant support levels. However, the nearest one is located at 1.5345 (depicted 50% Fibonacci Level and 100 SMA).
The recent low at 1.5485 is still holding price above providing demand for the pair which pushed again towards 1.5680 for further testing. However, fixation above 1.5680 enables the pair to reach 1.5750 directly supported by positive fundamental reports.
Price action should be watched around 1.5345 for a valid BUY entry with SL just below 1.5260.
Fundamentally, the number of people claiming unemployment benefits in the United Kingdom decreased more than expected during May, while the unemployment rate stabilized, according to official data showed Wednesday.