The Pound jumped yesterday, to break the resistance specified in yesterday’s report 1.5533, and then reach the first suggested target 1.5464 successfully & accurately as the price topped only 4 pips above it. Whet is even more important than meeting our 100 pips target is what we see when we investigate the rising move from 1.5295. When we do, we see that it is a correction for the previous dive from 1.5996, which topped very close to the Fibonacci 50% level. Yesterday’s high was 1.5650, the highest level since August 19th, whereas the important resistance is at 1.5646 (please refer to the attached chart). This resistance is pretty important, but we have to admit that the most important level is definitely 1.5728. This level will determine everything for the medium term. If we break it, we will literally fly, and if we fail close to it, this pair will be frustrated and move south. Or resistance of the day is 1.5646. If broken, we will target 1.5728 & 1.5854. On the other hand, it would sound bizarre to say that the Pound is weak, and we will not say that. But we do believe that as long as it is below 1.5728, it will be vulnerable. The first sign of a failure at 1.5646 will be going back to trade below 1.5585. If this happens, expect a big drop, targeting 1.5463 first, then the important and strong 1.5370.

Support:

• 1.5585: the rising trend line from Tuesday’s low on intraday charts.

• 1.5463: Fibonacci 61.8% for the short term.

• 1.5370: Aug 24th low.

Resistance:

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

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

• 1.5854: Aug 4th low.