Bias: We should see gains to 1.4772 minimum and probably 1.4842-63
Yesterday was a bit of a messy day but overall bullish and this is seeing further gains this morning. Already we are close to the 1.4772 target and while we should take care around here I feel that the greater risk is probably now for a move through to 1.4842-63. Note the bearish divergences in both hourly & 4-hour charts. Thus only above 1.4863 would pressure the 1.4984 high and if this breaks then we may be talking about follow-through to 1.5136.
24th March: The rally has pushed through the 1.4660-70 resistance and is now approaching the next barriers at 1.4772 and 1.4840-63. However, these do seem to have a stronger chance of holding and provoking a correction at least. Above 1.4984 would imply a move to 1.5136 at least...
The Pound started the day looking like it would remain in a sideways pattern but towards the end of the day pushed higher and this has extended in Asian trading. Observe the 1.4772 resistance for signs of a reversal pattern - or at 1.4840-63. I feel that one of these has potential to cap. Only an earlier break below 1.4646 would undermine the bullish structure and allow a pullback through 1.4585 and back to 1.4546. To confirm a stronger correction we'll need a break below yesterday's 1.4449 low...
24th March: I am still concerned with the depth of the pullback. Either we'll stop at or below 1.4840-63 or we're going to see the rally reach 1.5136. Back below 1.4449 will assist the downside.
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