- Sterling rose for a second day against the dollar on Tuesday, extending Monday's gains on M&A news
- Mitsui Sumitomo Insurance said it had agreed to buy British insurer Amlin Plc in a cash deal that values the latter at about 3.46 billion pounds ($5.31 billion)
- Sterling hit a one-week high of $1.5390, recovering from the four-month low of $1.5163 struck on Friday, as short sterling positions being squeezed
- Cable rally was however capped at 1.5404, the pair has edged lower and currently trades at 1.5381
- Immediate resistance is located at 1.5407 (Daily High Aug 1), while support on the downside is seen at 1.5352 (4h 55EMA)
- Investors eyeing BoE's MPC meet on Thursday and release minutes. Last month just one MPC member voted in favour of an immediate rate hike
R1: 1.5407 (Daily High Aug 1)
R2: 1.5415 (38.2% of 1.5820 - 1.5164)
R3: 1.5437 (Daily High Aug 31)
Support Levels:
S1: 1.5368 (session lows Sept 8)
S2: 1.5352 (4h 55EMA)
S3: 1.5217 (30 DMA Lower Bollinger)
