The Pound broke the support specified in yesterday’s report, 1.5660 and dropped hard to successfully reach our suggested target of 1.5549. with this drop, the Pound has sailed away from the all important 1.5728, and therefore, the technical outlook is now negative, without a doubt, and based on several factors which are: 1. The extremely accurate top at 1.5728, 2. Breaking the rising trend line from last week’s high & 3. Yesterday’s drop to a 6-day low. Short term support is at 1.5558, if broken, we expect a strong drop which will look a lot like yesterday’s fall. The targets for such a drop will be the important 1.5438, then 1.5344. Resistance is at 1.5655, and only with a break here that we will change our negative outlook. If we get this break, things will change, and we will be on the way yet to another test of the important 1.5728 level, and if broken we will shoot for 1.5854. But, as long as we are below 1.5655, things are negative for this weak pair.

Support:

• 1.5558: the rising trend line from yesterday’s low on intraday charts.

• 1.5438: short term Fibonacci 61.8% support.

• 1.5344: Sep 10th low, a well known support area.

Resistance:

• 1.5655: Fibonacci 61.8% for the drop from Friday’s top.

• 1.5728: Fibonacci 61.8% for the whole drop from Aug 6th top.

• 1.5854: Aug 4th low.