After the market’s open, the Pound had hit the highest level since Aug 11th at 1.5843, and that came as a natural result of breaking the important 1.5728 in the second attempt on Friday. The technical indicators show a state of “overbnought” which leaves the possibility of a sharp correction there, but the short term trend is a rising one after breaking the 1.5728 level. This is why we strongly recommend not to pick sides today before breaking the specified support or resistance, and we believe that the short term direction will not show itself before a break! Short term support is provided by the 38.2% Fibonacci level of the micro-term at 1.5765. If this level is broken , we will drop to more important Fibonacci level at 1.5673 &1.5632. On the other hand, the top of the rising channel from Sep 21st low on the hourly chart could tackle this rise, but if it gives way then the party will continue! The top of the channel is at 1.5871, and if broken we will jump to 1.5965 & 1.6000.

Support:

• 1.5765: Micro term Fibonacci 38.2% level

• 1.5673: short term Fibonacci 50% support.

• 1.5632: short term Fibonacci 61.8% support.

Resistance:

• 1.5871: the top of the rising trend channel on the hourly chart.

• 1.5965: Aug 3rd high.

• 1.6000: psychological level.