This Great Graphic, created on Bloomberg, shows that the uptrend line in sterling off the mid-March lows is being threatened by the decline over the past two session.
The trend line comes in near $1.5335 today and rises toward $1.5395 over the course of next week.
Sterling has tried several times to get above the $1.56 level, which corresponds to a 50% retracement of sterling's Jan-mid-March sell-off.
A break now of the trend line would suggest that the correction is over and our idea of a move toward $1.58 was wrong. While some support may be seen near $1.5300 , we suspect a better target is near $1.5220, with risk extending toward $1.5130 in the days ahead.
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