FXstreet.com (Barcelona) - After an squeeze higher past yesterday's high, reaching a fresh 7-week high at 1.4830, sellers ave send the Pound back below 1.4775 level. At the moment the Pound trades some pips below the mentioned level.
Next support level comes at 1.4670 Downtrend line from 1.5725 Dec 17 high, and below there, 1.4635 and 1.4585. On the upside 1.4775 remains a seemingly strong level, and above there, today's high at 1.4830, and 1.4915 (Feb 10 high).
Resistance at 1.4775, represents a struggle between buyers and sellers, according to Carol Harmer, technical analyst at Charmer Charts: There is a struggle then at 1.4780. If 1.4780 wins the day you will have a double top formation on the hourly charts. This is quite a large pattern so the downside potential could be quite significant, Initial weakness, if seen has a target area of 1.4609. Short covering will be at these lower levels. Sellers would then be in evident below 1.4580. A break of this support sees further weakness leading to 1.4520/00. Shorts covering and fresh buyers are expected to hold this support at bay.
On the upside, harmer points out to 1.4810 as the level to trigger bulls: Above 1.4810 negates double top formation and buyers will gleefully pounce on the ride then to 1.4915. If this resistance is broken look for 1.4985 to entice.