Scenario 1: Sterling continues to come under pressure with a break of trend support showing concern among investors. Market approaching 38.2% fib and 23/24-Dec low at 1.2921/04. 1.2898/62 is another area which has seen a number of daily highs and lows. Multiple daily lows between 1.2826/.2768 followed by the 50% fib at 1.2737.
Scenario 2: After initially starting off yesterday on the front foot we quickly came under pressure. Buyers will want this to retrace yesterday's losses and get back above the 50-day SMA at 1.3067. Weekly pivot at 1.3131.
Chart: Daily chart showing trend support break and we are now within touching distance of the 38.2% fib.
Scenario 1: 50-day SMA acting as resistance as we start to pullback. 1.1002/.0981 remains your main support. If we find this level under pressure once again then we have the 78.6% fib and daily lows between 1.0957/41. Last year's low is at 1.0879.
Scenario 2: 50-day SMA at 1.1095, 50% fib at 1.1116, 200-day SMA at 1.1128 are the main resistance levels to the upside. 1.1165/99 is the level buyers will want to beat and sustain a hold above.
Chart: Daily chart showing a bounce from 1.1002/.0981 and push on the 50 day SMA.
Scenario 1: Trading has clawed back losses and we now trade up to the 38.2% fib at 13,173. 50% fib at 13,263 coincides with the 31-Jan high. 61.8% at 13,353 is just short of the 29-Jan high at 13,377.
Scenario 2: Below weekly pivot at 13,087 then there is a support at 12,987 and then the major support at 12,884.
Chart: Daily chart showing recent push down to 10-Dec low before the drive back up. Market has pushed through 38.2% fib and looking to trade up to the 50%.
Scenario 1: Is 28,934 the target? It's a 61.8% fib and double top. We need to get past the 50% first at 28,787. If we get past the 61.8% then the next target is 29,143 and then we are back in all-time high territory.
Scenario 2: Weekly pivot at 28,461 is the support which has seen the most reaction. 8-Jan low and 61.8% fib at 28,117 is the next major support followed by the 28,000 psychological level.
Chart: Four-hour chart showing once again an incredible bounce for equities, when will 28,934 see another test?