(U18) Testing Key Resistance...>

SHORT-STERLING TECHS: (U18) Testing Key Resistance 

*RES 4: 99.205 High July 18 

*RES 3: 99.196 55-DMA 

*RES 2: 99.165 Channel resistance from May 31 high 

*RES 1: 99.165 200-DMA 

*PREVIOUS CLOSE: 99.165 

*SUP 1: 99.154 21-DMA 

*SUP 2: 99.150 Lows July 5 & 23 

*SUP 3: 99.125 Lows August 2 

*SUP 4: 99.060 Low April 24 

The 99.165 level is a line in the sand for the September short sterling

contract, with an upside breakout looking increasingly likely as prices test

this level. The level marks the 200-DMA as well as downtrend resistance from the

May 31 high, and a close above here would suggest further gains ahead, initially

to the 55-DMA at 99.196. Bears need to close back below the 21-DMA at 99.154 to

reaffirm the downward trend and put the focus back on the August 2 lows.