The Pound jumped after the market open and went back to test the important resistance area 1.5480/90, which was tested on the first day of this month, and dropped from there with more than 100 pips at that time. This area is formed between the short term Fibonacci 61.8% level at 1.5480, and Sep 1st high. Will the price break it or will it frustrate it again just like it did 5 days ago? We strongly believe that the reaction from this area is the single most important thing that will determine the direction for the next few hours. If we break it (And here we prefer a break of the top of the area at 1.5490, not the Fibo level at 1.5480), the price will jump to 1.5565, and may be later to 1.5669. On the other hand the support is at 1.5442, and breaking this level would mean we are getting far from the important 1.5480/90, and a new drop will start. The targets for such a drop are 1.5349, and 1.5262. everything depends on the reaction from the all important 1.5480/90.

Support:

• 1.5442: the rising trend line from Friday’s low on intraday charts.
• 1.5349: Thursday’s low.
• 1.5262: Jul 5th high.

Resistance:

• 1.5490: the top of the resistance area formed between Fibonacci 61.8% short term & Sep 1st high.
• 1.5565: the falling trend line from Aug 16th high.
• 1.5669: Aug 19th important top.