By: Colin Jessup
I wrote about this potential double bottom on October 4th, and it did in fact form...but the question now is, will it hold? We have the BoE Interest Rate decision being released as well as the ECB's decision on Interest Rates today, and as such we could potentially see some big movement...but I doubt we will. Both are expected to change little, if at all. On Friday we have the USA's Unemployment Rate and Non-Farm Payroll numbers coming out which could give the Greenback some legs and push the Sterling further down. The USD also got some help today from higher oil prices but it will take more than one day of gains to force a rally. Look for support at 1.5340 and then 1.5200 if 1.5340 breaks, but if the support level holds and price turns more bullish, expect resistance at 1.5460, 1.5550 and 1.5600 above that.
Happy Trading!
