The cable invalidated the reversal Head and Shoulders pattern maintaining a quite strong bullish momentum to the upside.
Daily closure above 1.5719 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).
Previous bullish swing targeted 100% Fibonacci Expansion level. This renders the current one targeting the same level which will be located around 1.6000 provided that 1.5760 remains solid.
A weekly gap has pushed the cable to the upside for about 60 pips, target level 1.6000 is getting reachable.
Obvious bullish pressure has been applied during the past two weeks rendering 1.5450 a valuable ascending bottom which was established during August.
The ascending channel depicted on the chart gives bullish potential for the pair towards 1.5985 where the upper limit of the channel is roughly located.
The pair remains bullish as long as it is moving above 1.5780 aiming for higher targets as mentioned above.
Re-?losure below 1.5780 enables the bears to initiate an early retracement move.
Fundamentally, the weekly gap resulted from withdrawal of U.S. Secretary of the Treasury, Larry Summers is his name, from the next governor of the Federal election, which calmed fears about the early end of the monetary easing program.
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