The Scotland Independence news hit the pound very strongly. The pair hit the previous two swing lows in intraday, but at the end of the day the pair managed to close above the higher swing which means the bullish outlook is still alive in the short term. The 200DEma gave enough support to push the prices towards 200DSma. The pair opened with a mild bearish note; we expect the previous swing low at 170.45 will provide enough support. The trading pattern is framed between 169.20-171.30. When a daily close is above 171.30, it will fly up to 171.65 and 171.88. The short-term trend will turn negative if the pair closes below 169.20 on a weekly closing basis.
Key support level is 169.20.
Resistance is at 172.25.
Until a week closes above 172.25, bears will try to push the prices to lower levels.
Intraday cmp 170.62.
The pair is restricted at 12ema, above this the 2-week descending trend line will act as major resistance. We can see a sharp run only above 171 towards 171.50 and 171.70. On the down side, it has support at 170.50. We recommend selling below 170.50. Buy above 171.
The material has been provided by InstaForex Company - www.instaforex.com
