Short term forecast-
The Scotland Independence news hit the pound very strongly, hit the 200WEma and is approaching the short-term support or 1.60 50Msma. Currently, the pound is trading at 1.6099. A break below 1.60 leads to another 100-150 pips fall up to 1.5894-1.5850 (November 2013 low) in the least case, it can extend its fall up to 1.5718 (the 61.8fib level move from 1.4813-1.7192). The monthly momentum Oscillators are still indicating the sell mode. On the upside, it has resistance at 1.6210 and 1.6252 is the monthly strong resistance
Key support level 1.60
Intraday cmp 1.61
The hourly and intraday oscillators are indicating oversold levels. At this point of time, fresh selling is not a good idea. Use a dip to buy on an hourly and intraday basis, wait for an up move to sell again. This view is valid with sl 1.60 on a daily closing basis. The pair has resistance at 1.62-1.6220, 1.6252, 1.6310, and 1.6391. Bulls use a dip to buy with sl 1.60 and bears can wait for a minor up move to sell again.
The material has been provided by InstaForex Company - www.instaforex.com
