The verdict is still - but as noted in this month’s Sterling Scalp Report, this sure is a good spot to look. Interim resistance stands with the 50-line, currently around ~1.3350s backed by more significant resistance at 1.3470/94 where the 52-week moving average converges on the 2017 high-week close and the median-line. A breach there would be needed to suggest a more significant low is in place.
Bottom line: Sterling is attempting to post and outside-day reversal off confluence support today and we’re looking for follow-through on this rebound. From a trading standpoint, I’ll favor fading weakness against today’s low for now. A break lower would invalidate the reversal play with such a scenario targeting subsequent support objectives at the October lows at 1.3027 and the key 61.8% Fibonacci retracement at 1.2877.
