FXstreet.com (Barcelona) - Economic indicators have shaken the Pound up and down on Thursday; the Sterling rose to 1.6610 intra-week high on higher than expected retail sales to drop afterwards to levels approaching 1.6510 intra-day low on the back of a sharp increase of UK public deficit.
The Pound trades now at 1.6520 with next support level at 1.6500 intra-day low, and below here, 1.6430 (Aug 10 and 11 low), and 1.6390 (Aug 12 low). On the upside, resistance levels lie at 1.6500 intra-day low, and below here, 1.6430 (Aug 10 and 11 low), and 1.6390 (Aug 12 low).
According to Ian G Coleman, collaborator at FXstreet.com, the Pound is on an upside trend and 1.6560 resistance is key for further rally: If you look to the daily chart we are hanging onto that big trend line with a large hammer yesterday. We pulled higher but only to be stopped by the previous support now resistance, at 1.6562. This also lined up with the trend channel. We are non -trending but the ADX is turning up. A clear break here and I would look to 1.6780-95 area as the next target.