The Pound dropped from the very same area which stopped it on Sep 1st, the all important resistance 1.5480/90. It fell to break the support specified in yesterday’s report 1.5442, and successfully and accurately reaching our suggested target 1.5349, stopping only 5 pips below it. Today, we expect more of the same, and we expect a serious break of the support at 1.5349, resulting in a continuation of the drop from the massive 1.5490! if the price manages to do so, we will be expecting another episode of “the drop” series, a lot like yesterday’s. This drop will target 1.5262 at the very least, and at a later time 1.5151. On the other hand, the most important resistance is still at 1.5480/90, but there is a short term resistance “guarding” it, which is short term resistance 1.5433. if broken, the Pound will reverse direction, and refuse our negative outlook, and will be on the way to yet another (a third) test, of the all important 1.5480/90, and if we pass by it, 1.5565 will be the target.

Support:

• 1.5349: Thursday’s low.

• 1.5262: Jul 5th high.

• 1.5151: the rising trend line from Friday’s low on intraday charts.

Resistance:

• 1.5433: Fibonacci 61.8% for the drop from yesterday’s high.

• 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.