• Sterling rising inside short-term corrective wave (ii)
• Likely to rise to resistance level 1.3900
Sterling continues to rise inside the short-term corrective wave (ii), which started earlier with the daily reversal pattern Bullish Engulfing from the support area located between the multi-month support level 1.3775 (which reversed the price in march and April), lower daily Bollinger band and the 50% Fibonacci correction of the sharp upward impulse from last year.
Given the prevailing daily uptrend – Sterling can be expected to rise further toward the next resistance level 1.3900 (which stopped previous waves (a) and (ii) and the target price for the completion of the active corrective wave (ii)).
