The Pound jumped after the market's open and continued a bounce it started on Friday, going back above 1.54. The question we presented yesterday was will it succeeds in creating yet another test of 1.5490? And we have recommended selling close to this level. The price behavior was completely in line with our analysis. The price stopped at 1.5486 (4 pips before our resistance) and dived to 1.5347 (3 pips before the target). That was the 4th time this month we test the massive 1.5490! and we still believe that if there was a 5th time, it is a good selling opportunity, with a stop above 1.5532. The reasons behind this belief are two: we have seen how this massive resistance level has rejected the price 4 times recently, and because the falling trend line from Aug 16th top is just above it providing another important resistance. It is hard to picture this pair breaking both levels today. On the other hand, breaking 1.5490 decisively is not probable today, but if it happens, the Pound will target 1.5575 at the very least, and then 1.5646. support is at 1.5360, and a break here would be a signal of a big fall, targeting 1.5262 & 1.5147.

Support:

1.5360: important intraday level.
1.5249: Jul 23rd low.
1.5147: Jul 22nd low.

Resistance:

1.5490: the massive resistance level containing the highs of Sep 1st & 6th.
1.5575: Aug 30th high.
1.5646: Fibonacci 50% for the whole drop from Aug 6th top.