Sterling at point critical

The sterling has recently gained strong bullish momentum against the majors as the positive sentiment was elevated in recent weeks. The main drive for this sentiment was not only investors’ speculations the world economy is stabilizing but investors assessments the banking sector is slowly returning to profitability. The main service the British economy exports to the world is banking services. Hence the sterling tends to fluctuate with the sentiment in the banking sector. When the world banking sector was on the verge of claps the sterling depreciated strongly now with hops of recovery in the sector the sterling gains.

Technically after finding a strong bottom at the 1.32-1.35 the sterling dollar trade has moved in a steady bullish trend. However the pair has persistently failed to break the 1.5 price resistance. Each time the pair reached the 1.5 it seems the market was ready to sell the sterling. The pound dollar trade has moved yet once again to the 1.5 price area and is gearing up for another attempt to break that resistance. A success or the failure to break this price area could just be a critical faze for the sterling trend and its sustainability.