The pound sterling is very optimistic after it had fallen to 1.5915 (bullish channel level.) Now it is trading at 1.6143. As we mentioned in our article on Tuesday, we expected a bounce upwards and it happened.
In the short term a break of the downtrend line is likely to occur. If this line is broken, the upward movement until 1.63 is likely to continue. On the other hand, the downward pressure will continue to increase below 1.6135 (daily fractal), so we can expect a correction of the pair to 1.6010.
You can make the decision to buy or sell this pair, according to the graph shown below. It is important to take into account the fractal 1.6135.
At a fundamental level, Mervyn King, Chairman of the Monetary Policy Committee, says the Committee is ready to add to a new stimulus, since it assesses the strength of the national recovery amid signs of global economic weakness is spreading. For this reason this pair is optimistic, it is likely that for the next few days it is trading by 1.63.
The technical indicator is at a level of indecision.

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