- The Sterling remained in strong bullish tone against dollar on Wednesday as buying interest continued as investors focused on a two-day Bank of England meeting that should provide clues on whether interest rates could be hiked in coming months.
- A purchasing managers' index (PMI) survey showing growth in Britain's construction industry tumbled to an 11-month low in July had little impact on the currency.
- The pound briefly hit daily high of $1.3245 after the data, the strongest since mid-September, which it had hit after the equivalent survey for the manufacturing sector came in stronger than expected. It eased back to trade around $1.3225 in the early US session.
- Currently, the currency pair is trading at 1.3225 levels, it is set to advance further towards 1.3260 and later 1.3300 levels in the short term.
- To the upside, immediate resistance can be seen at 1.3239, a break above this level would expose to cable to next resistance level at 1.3315.
- To the downside immediate support can be seen at 1.3189, a break below will open the door towards next level at 1.3157.
Resistance Levels
R1: 1.3239 (50% Retracement Level)
R2: 1.3315 (61.8% Retracement Level)
R3: 1.3348 (Sep 11th 2016 highs)
Support Levels
S1: 1.3189 (Daily lows)
S2: 1.3157 (23.6% Retracement Levels)
S3: 1.3100 (Psychological levels)
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