The cable hit the 5-year breakout trend line in the previous week, but managed to close above that. The Pound has a support zone between 1.6050-1.6038 levels. The bulls managed to close above 200WEma 1.6209 in the previous week. The weekly support is at 1.6050 and the monthly support is at 1.60 (200WSMA). The short-term trend decider level is at 1.60, below this we can expect another steep fall immediately of 100-150 pips and later 300 pips, to 1.57 levels.

The cable has a resistance zone between 1.6280-1.6283 levels above it, it can fly up to 1.6431 (20Dsma). Until the pair closes above 1.6431 on a daily basis, selling on every rise will mint the money. This Thursday, Scottish referendum will put demand pressure for the pound towards a downside target. For this week, we recommend to sell below 1.62 or sellers can wait for a pullback and sell at higher levels.

Support 1.6232, 1.6198-1.6190, 1.6179

Sell below 1.6232