• 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
  
  

Resistance Levels:

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)