Strong rallies the last two sessions have seen buyers take this near to target at 1.5068. Sellers have defended well at these higher levels and if they can keep Sterling underpinned below here you should see corrective forces kick in today.
1.4876/60 is your 50% short term retracement level and buyers should be out at these lower levels fighting to keep this afloat. Only below 1.4825 would sellers get on top of the market thus seeing further corrective pressure with 1.4708/04 the overall short term target that they will aim for. Expect buyers to hold this support and for the market to carry on within its uptrend.
Now as stated you have resistance in the 1.5068/88 region. If buyers can get to grips with this significant level and break through the 1.5100 barrier they can take this quite quickly to 1.5180. Profit taking will be evident to here. Sellers will attempt shorts, but they will be wary of stampeding buyers and will abort if 1.5220 breaks and join buyers in driving this higher to 1.5280.
Buyers have been busy and have taken the market higher to 1.3438. Currently you are seeing corrective pressure from the sellers kick in with the first short term fib level of 1.3358 virtually attained. Buyers have stepped in, but will not hold if the market breaks the 1.3340 region. Sellers would then triumphantly push the market lower with 1.3308 to 1.3280 looking to be the short term objective.
Buyers will be evident at these lows and the market should then resume its uptrend, swatting sellers aside, breaking higher through 1.3440 for 1.3515/35 resistance band.
Profit taking will occur at these highs and sellers will seize this opportunity to retrace some of the move higher back to the break out point of 1.3440 where once more buyers are waiting.
STG / EURO
Stg/Euro came lower yesterday after Fridays gains to 1.1255. However the downside was contained by buyers at 1.1133 and buyers look set to push the market higher today.
1.1254/63 would once more be the targeted area. Sellers will hover over this resistance hoping that buyers after profit taking will disappear and let them have their way for the next move. However buyers are looking to be on a roll and expect them to try and break higher to between 1.1350 and 1.1377. Here sellers will be more aggressive as they held this market at bay 5 times previously. Buyers however will not give in easily and will pull out the stops to break through the 1.1385 resistance which would send sellers scuttling for cover. A break above here keeps buyers in charge for 1.1440/45.
Now if 1.1115 support yields, sellers will have won that round leaving 1.1045 then as your short term objective.