The failed rally through 1.5269 kept us bearish BUT Sterling held more important channel support at 1.5200 and the smaller bull flag that formed within the uptrend has led to a continuation higher. It is important also to note that this rally has cleared all the old support dating back to 2010 leaving the bulls in control near-term. The daily chart highlights a cluster of Fibo resistance at 1.5578 and that aligns with channel resistance later this week. Support is now the recent break above the tweezers top at 1.5412. Also, the classic flag projection also targets the 1.5578 level making this a higher confidence target in the coming week. Levels: Support – 1.5412, 1.5382, 1.5368 Resistance – 1.5578, 1.5829
Natixis