FXstreet.com (Barcelona) - Sterling's rally from 1.4515 low yesterday has found resistance at 1.4725 and the pair pulled back below 1.4700 on early European session. At the moment the Pound trades at 1.4670.

According to Carol Harmer, technical analyst at Charmer Charts, the Pound should break above here to get on the path towards 1.4775 level: Sterling rebounded off 1.4521 twice now, so buyers were supporting this market at the longer term 38% Fib level and have managed to push this higher to 1.4722 where we are currently. Profit taking has occurred at these higher levels, but buyers still seem to have the bit between the teeth and should break this resistance of 1.4722 which would lead the market higher for 1.4775/80 initially.

On the hourly charts, Harmer points out to 1.4620 as the lowest levels before buying pressure: As this was the previous high from the 24th April thus creating a double top on the hourly charts, sellers will be there waiting to pounce to drive this back lower to 1.4620 minimum target.

On the upside, Harmer forecasts levels close to 1.50 if the Pound breaks 1.4835: However sellers will quickly succumb to buying pressure if the market makes a break above 1.4834. Buyers will triumphantly lead this higher through to 1.4950 where profit taking will occur.

For more information, read our latest forex news.