There was a false trendline break just above key 1.6260 support; the rally since suggests a new high ahead for Sterling with extension targets as high as 1.6711. The positive reversal offered by RSI is also supportive of further strength. (daily) S/t, the latest pullback held firm at the 76.4% retrace which produces a powerful rally. The 1.618 extension of the first impulse is 1.6640. Support is now building at old resistance starting at 1.6517 and drifting down to 1.6458. The A-B-C pullback and rejection false trendline break form the case forr new highs in Sterling. (hrly) Conviction: Medium Trade: Flat. Levels: Support – 1.6517, 1.6458, 1.6400 Resistance – 1.66, 1.6640, 1.6711
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Nomura