FXstreet.com (Barcelona) - The Sterling's 3-day rally against the Dollar has found an strong resistance at 1.6125 after rising 355 pips from 4-month low at 1.5770. Pair has been rejected at intra-week high at 1.6125, MA200 hourly chart, and it has fallen quickly around 180 pips to test MA55 hourly chart at 1.5945 during the American session.
Currently the pair is trading around 1.5980/90, 0.20% above today's opening price action at 1.5957. On the downside, support levels lie at 1.5945, and below here, 1.5880 and 1.5800 (Jun 8 low). Resistance levels lie at 1.6110 (End Aug/Start September lows) and then at 1.6200 and 1.6350.
Valeria Bednarik, FXstreet.com collaborator, comments: Pair upside rally, as expected strongly retreat from the strong resistance level at 1.6110 zone, suggesting the upside should remain limited. Under 1.5985 yesterday's high and first support for next hours, pair could accelerate the fall and reach key 1.5920 level. CCI cutting the 0.00 line, and Momentum pointing to the downside, support the bias yet better if under mentioned 1.5985 zone.
Bednarik provides us with her levels: Support levels: 1.6010 1.5985 1.5920. Resistance levels: 1.6060 1.6090 1.6110.
On a longer perspective, the Pound remains bearish, and according to the Kshitij Consultancy Service Team, targeting levels at 1.5900-5850: The bearish view remains. However, we will still have to allow for a rise towards 1.62 (61.8% retracement of the fall from 1.6467 (23-Sep) to 1.5768 (28-Sep). A significant rise beyond 1.62 would cause us to review our stance. But till this holds, the bearish view remains. Hence Cable could be targeting 1.5900-5850 initially and 1.57 thereafter.