• Recent trend has been strong and bears will need to be careful of selling into weakness;
  • FOMC and plenty of UK data this week should ensure that interest remains high;
  • Previous highs at 1.6250 provide support and Friday’s fall stalled at 1.6260;
  • Bulls can try buying at 1.6270 with a very tight stop below 1.6240 looking for a 1.6450 re-test;
  • Bears need to be patient and wait for their case to strengthen- if 1.6240 breaks then revert to rally-selling mode.