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Sterling Remains Unstable

Yesterday’s daily candle broke below the mid lower trend line in the hourly chart and edged closer to Friday’s Open. The price on the hourly chart shows an upward weakness and continues to plot higher lows but remains range bound between 1.7993 and Friday’s close. Technical indicators are neutral while RSI has retraced only to descend further. Yesterday’s candle appeared to be an engulfing candle but was short lived and revealed it’s true identity by the end of its session.

Today’s candle will however make up yesterday’s losses by marginally covering the retracements and try to descend below 1.7993.The new doors towards the south will be opened in case the price manages to close below 1.7993. The next big support is at 1.7878 followed by 1.7774 while resistance remains at 1.8108 and 1.8174.

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