The US dollar softened after Treasury Secretary Yellen said inflation was not entrenched. After receding from the previous high at 1.1500, the pound found support at the base (1.1100) of the current rebound. This is a sign of solid interest in keeping Sterling afloat. An oversold RSI has attracted some bargain hunters. A break above 1.1500 would cause a short squeeze and raise short-term volatility. Then September’s high and a major daily resistance at 1.1710 could be in sight. A fall below 1.1100 may resume the downtrend.
