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Forex: A Sterling come back meeting resistance 1.5548




Forex: A Sterling come back meeting resistance 1.5548

It now try’s to hold onto levels above yesterdays fragile support line of 1.5520 and trades at the high for today’s sessions so far at 1.5548.

FXstreet.com (London) - Without being able to fully understand yesterdays sharp sell off in Sterling, there were the usual market rumours; a large RM sell order and one off corporate flow with rumours of transaction taxes and finally there was talk of positioning ahead of Thursdays MPC meet.

With the breaking of key levels, well, cable only exacerbated the move and short-term stops were taken out through 1.5520.

Then the multiple lows between 1.5470/80 last week were targeted and also taken out on a very large sell order to the 1.5448 level.

The Asian session merely craved out a 20 pip range, but today, Sterling has been benefitting from outright dollar weakness and has been advancing throughout the US morning with higher highs in a rising channel from 1.5470.

It now try’s to hold onto levels above yesterdays fragile support line of 1.5520 and trades at the high for today’s sessions so far at 1.5548.

On the 15 and 5 min charts, it had previously closed with a lower high but bids have helped it continue in this steep rising channel.

1.5580 would appear to be the ultimate resistance line for US trading, positioning themselves ahead of tomorrows BoE and US initial Jobless Claims.

Support 1.5520, yesterdays fragile positioning.

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