The Pound jumped after the market's open and continued a bounce it started on Friday, going back above 1.54. Now the question is will is succeeds in creating yet another test of 1.5490? In fact, we could see a test of this massive resistance area, but we believe that such a test would provide a selling opportunity, with a stop above 1.5532. The reasons behind this belief are two: we have seen how this massive resistance level has rejected the price 3 times recently, and because the falling trend line from Aug 16th top is just above it providing another important resistance. It is hard to picture this pair breaking both levels today, and that is why we recommend this strategy: sell around 1.5490, stop clearly above 1.5532, and the target at 1.5344. On the other hand, breaking 1.5532 decisively is not probable today, but if it happens, the Pound will target 1.5646.

Support:

1.5395: Fibonacci 61.8% for the short term.

1.5344: Sep 6th "& 10th low.

1.5295: Sep 7th low.

Resistance:

1.5490: the massive resistance level containing the highs of Sep 1st & 6th.

1.5532: Wednesday's high which is just above the falling trend line from Aug 16th top.

1.5646: Fibonacci 50% for the whole drop from Aug 6th top.