Pound holds around its daily high against the greenback, reached after the shocking improvement in housing data, which gathered far more attention than inflation readings in line with expectations. As commented on previous updates, buyers around 1.6660 strong static support level were strong enough to halt any attempt to break lower, and when the level was tested triggered an impressive recovery. Technically, the hourly chart shows price above its 20 SMA while indicators grind higher around their midlines, lacking strength at the time being. In the 4 hours chart 20 SMA caps the upside around 1.6745 while indicators lost the downward potential, but hold right below their midlines. Further gains above 1.6750 are now required to confirm a full recovery, eyeing then 1.6820 price zone.
Support levels: 1.6710 1.6695 1.6660
Resistance levels: 1.6750 1.6785 1.6820