The sterling has been attempting to break above the 1.5700/1.5800 region since the beginning of June, failing in its target and thus retreating to the comfort zone of 1.5400/1.5500
According to A.L.Rasmussen, Chief Analyst at Danske Bank, and assessing the decline from 1.6747 at the end of April 2011 to mid January lows around the 1.5230 region.
“The choppy nature of this decline hints at a corrective structure. This view is reinforced by the repeated failure to breach the 61.8% Fib retracement (1.5190) of the prior 1.4228-1.6747 rise.”
The expert adds that selling pressure tried to breach this level but found strong support.
He recommends buying at 1.5650 for an objective of 1.6304. Longer-term scope seen to 1.6747. Place stop at 1.5450.