- Pound sterling likely to remain under pressure as terrorism attacks in Brussels fuelled risk of a Brexit.
- Also hurting sentiment for the Pound was softer-than-expected UK inflation for February, consumer prices rose 0.3% on a year to, below the expected 0.4% gain.
- The pair hit session highs at 0.7905 on Tuesday and is currently trading a tight range, just shy of the 0.79 handle.
- Upside finds strong trendline resistance at 0.7905 (trendline and Mar 22nd highs), breaks above could fine next resistance at 0.7911 (Mar 17th highs).
- Techs support upside, major moving averages are biased higher, RSI strength seen at 60 levels.
- On the weekly charts, the pair has broken above the weekly cloud and upside is just pausing at 50% Fib of 0.88150 (Feb 2013) to 0.69307 (July 2015) fall.
- Momentum on the weeklies is also bullish, bulls likely to take the pair further higher. Tests of 0.8095 which is 61.8% Fib of 0.88150 to 0.69307 likely.
- Supports on the downside are aligned at 0.7840 (5-DMA), 0.7825 (10-DMA) and 0.7709 (cloud top).
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