By: Colin Jessup
The Sterling found some support at 1.5775 during the Asian session but will it hold? Investors appear to be returning to the North American markets while they wait for the EU to come to the rescue of Greece. This converts to bearish pressure on the Sterling as the Greenback makes up some lost ground. If the monthly support level of 1.5775 holds and price turns bullish, we will look for price to retrace, most likely to the ascending trend-line we broke this week at 1.5920, 1.5975 and 1.6100 after that. If we break support at 1.5775 however we could see price fall to 1.5650 quite rapidly, and with a technical vacuum below 1.5650 price will most likely free fall to about 1.5447 with a monthly support zone below that at 1.5367. Price has not been able to break & hold below the support at 1.5775 since November 2010, this gives me pause from a selling perspective, and could be another indicator for the bulls to latch onto...
