By: Colin Jessup
The Sterling has been falling for 6 of the past 8 days after consolidating above the 1.5950 level for 2 weeks. Now we are sitting on a Support zone at 1.5575 could see price stop and reverse, or break through and possibly re-test the previous low of 1.5272 in the weeks ahead. In the short term I am looking for price to push into the zone during the Asian session, and turn bullish during the UK & USA sessions, at least temporarily. If we break through support we will find further support at around 1.5490 and 1.5435. To the upside, look for Resistance at 1.5680, 1.5825 and 1.5950. I am cautiously Bullish on this pair as we are currently mid-way through the Tokyo session and seeing prices trading slightly lower, if history repeats we should see price action turn Bullish towards the end of the Asian session or open of the UK/USA Sessions.
Happy Trading!
