By: Colin Jessup
The Sterling lost some ground today against the Greenback, which seems to have been strengthened by positive numbers from the Durable Goods Orders report out of the USA for July. With little data coming out of London today the Greenback seized the opportunity and capitalised on it by gaining 120 pips.
1.6350 is strong support on the daily chart with 1.6270 being another strong support number based on the monthly time frame. Its probably prudent to consider that price could reverse at one of these levels and turn the bulls loose again. Price is currently trading around 1.6370 which just happens to be the 50% Fibonacci retracement level of the bullish run started 2 weeks ago. Below this we see the 61.8% level at 1.6304 also providing support.
Traders seem somewhat reserved this week, possibly waiting to pounce once Bernanke makes his announcement. News out of the UK for August 25 will be the Nationwide Housing Prices report and Initial Jobless Claims out of the US, which may have some impact on price action.
Happy Trading!