The next strong resistance is now seen at 1.5390. It is the resistance of a potential wedge pattern (red line on the graph). We expect the pair to retrace from this level and to retest support last week at the 1.5250 level. Technical drawings for the next few weeks is still bearish.
We will see a stack of UK PMI at the start of a new week. Thursday is likely to be a volatile day for the cable: Bank of England will hold a policy meeting and releasing its quarterly inflation report. According to the latest data, inflation expectations for the following year decline in October and has been below the Bank's target for 13 months. UK interest rates are widely expected to persist in 2015, so that the top side of the pound remains closed.
We will see a stack of UK PMI at the start of a new week. Thursday is likely to be a volatile day for the cable: Bank of England will hold a policy meeting and releasing its quarterly inflation report. According to the latest data, inflation expectations for the following year decline in October and has been below the Bank's target for 13 months. UK interest rates are widely expected to persist in 2015, so that the top side of the pound remains closed.
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