The Sterling has rebounded strongly against US dollar from 1.5450 levels to reaching Thursday's high at 1.5494. An attempt was made by bears to breach 1.5450 support level, however the attempt was rejected as the bulls pulled the pair all the way towards higher 1.5494 levels in the mid European session.
- Currently the pair is trading around 1.5477 levels and is approaching to test support level located at 1.5473. The support level at 1.5430 is likely to act as strong barrier to the bears and bring a rebound towards higher levels, therefore it's good to buy this pair around 1.5450 levels.
- To the upside, the strong resistance can be seen at 1.5572, a break above this level would expose the cable to next resistance level at 1.5627.
- To the downside immediate support can be seen at 1.5480 (61.8% Retracement level), a break below at this level will open the door towards next level at 1.5430 levels.
Recommendation: Go long above 1.5450, targets 1.5530, 1.5550, SL 1.5400
Resistance Levels
R1: 1.5494 (Daily high)
R2: 1.5508 (Oct 15th High)
R3: 1.5566 (Sep 21st high)
Support Levels
S1: 1.5473 (23.6% Retracement level)
S2: 1.5450 (Daily lows)
S3: 1.5430 (Sep 9th lows)
