FXstreet.com (Barcelona) - The Sterling has given back on Tuesday most of the gains posted on Monday, despite better than expected Trade Balance data in UK, at the moment 1.4772 is the key support level.

Cable has dropped after testing the upside line of the seven day upside trending channel at 1.4932, all the way down to the lower line of the channel at 1.4772, intraday resistance turned support, further down 1.4702, intra-week low, and 1.4590. On the upside, 1.4861 and 1.4914, minor resistance levels once above there, 1.4950 will be on focus.

According to the Swiss e Trade Strategy team, a rebound to test 1.4950 is likely: Still in an unbroken uptrend for 7 days now, cable has just tested the uptrend line in early European trading, with the market currently at 1.4790. We expect another upmove to set in today, which would lead to a test of the 1.4950 level.