Pound holding for the short-term at 1.6590

After getting hit hard in the last few hours, the Pound is trying to hold at Fibonacci 61.8% for the short-term at 1.6590, and this support in specific is what will determine if this strong drop coming from 1.6743 is to end or continue and make this day a hard one for the Pound! If 1.6590 holds, GBPUSD will be able to consolidate and take a shot at the resistance 1.6641, and if broken, the odds of testing and may be breaking yesterday’s top will be immense. A Break of 1.6641 will target 1.6717 first, then 1.6768. But, if this drop continue to show strength and speed by breaking 1.6590, it would mean that the rising trend from 1.6495 is over, and that we will be heading to attractive targets around 1.65, first of which is the test of the important trendline at 1.6531, and if broken the important support 1.6466.

Support:
• 1.6590: Fibonacci 61.8% for the short-term.
• 1.6531: the rising trendline from 1.6458 on the hourly chart.
• 1.6466: previous important support appearing on the hourly charts.
Resistance:
• 1.6641: short-term resistance.
• 1.6717: Fibonacci 61.8% for the short-term.
• 1.6768: Nov 18th low, a well known resistance/support area.




Munther T. Marji
FOREXPROS