Over the last month or so, the Cable has displayed interesting price action as it has firmly established some key levels 150 pips from each other. These levels are at 1.63, 1.6150, 1.60 and 1.5850. Over the course of the last few weeks, the Cable has fallen sharply from levels not seen for about 15 months up near 1.64. Recently it met strong support at the round number of 1.60 which has allowed it to rally a little over the last week and move back to another key level at 1.6150.
Over the last week, the Cable has met excess supply around 1.6150 as this has become a strong resistance level forcing the price away and back below 1.61. Over the bigger picture, the Cable has now traded within a wide range of 4.5 cents over the last four months or so, as these levels continue to play a role every time the price approaches one of them. The resistance level at 1.6150 continues to loom large as it provides significant selling pressure and is likely to play a role again should the Cable return there shortly. (Daily chart / 4 hourly chart below)
4 hourly chartPublication source