British Pound Struggles To Keep 1.7700

However in case the dollar longs manage to wrest control from the pound bulls and push the pair lower, a move below 1.7604, a level established by the 38.2 Fib of the 1.8500-1.7048 USD rally, will most likely see the greenback longs extend their gains below the psychologically important 1.7500 handle and take on 1.7487, a level established by the January 5 daily high and is reinforced by the 20-day SMA at 1.7473. Indicators are favoring cable longs with both positive momentum indicator and MACD above the zero line, while overbought Stochastic gives dollar longs a chance to reverse direction.