By: Colin Jessup
The Sterling continued to gain ground today closing 175 pips higher than yesterday, closing right on the 38.2 retracement level from the bearish run that started on August 19th. The daily chart hints at price going higher, possibly to 1.5950 and 1.6100 above that which will be longer term resistance. In the short term, look for resistance at 1.5775 and 1.5850. Support can be found at 1.5633 and 1.5535, with longer term support below at 1.5300. If we break above 1.5800 there is a strong possibility that price will continue on to those previously mentioned resistance zones. But, if price drops below 1.5540 we may see price fall to 1.5400 rather quickly. I am feeling rather bullish on this pair in the short term, expecting to see price move higher to around the 1.6100 level before continuing farther south.
