Due to the euro, the pound had a volatile day. The pound received support from the euro/pound cross throughout the day when the ECB’s Ewald Nowotny spoke. The pound fell after the US stats came out in the evening. By renewing the minimum, the price returned back to 1.55.
The pound stabilized at 1.5470. With such a movement pattern, we could see either a fall or a rise. I’ve gone for a fall to 1.5420 to 1.5470. The daily trend line hasn’t been broken.
The bulls have renewed the maximum, but they couldn’t strengthen beyond the trend line. Today the situation will depend on the euro. If the euro/dollar shifts downwards, the pound/dollar will u-turn downwards, following the euro. If the euro starts to recover, the pound bulls will have a foothold to push the price to 1.5630. This is where the overall trend line is.
The bulls will hold the rate close to the trend line at 1.5630.