Sterling bulls continue to defend the 1.5150 level

FXstreet.com (Barcelona) - The Sterling suffered steep losses to end last week, closing down 103 pips to finish at 1.5169.

Earlier in the session the UK released its latest Rightmove House Price Index. According to analysts at Rabobank, “the UK has already updated us this morning on house price trends in May, via Rightmove. They report that prices gained 2.1% MoM in the month. This follows a 2.1% gain in April so is quite robust and puts prices up 9.2% since the December 2012 trough. This source does tend to be more volatile than others and so we hazard against over-analyzing it. But it does add to the picture of nascent improvement panning-out in the UK’s property market.”

From a technical perspective, buyers continue to step in to defend the low of 1.5158 which was put in last week. The 1 hour chart is showing numerous bullish divergences between price and momentum (rsi) which is a sign selling pressure may be losing its intensity in the near term. Initial resistance sits at 1.5200 (previous support, now resistance on 1 hour chart), while first support sits at the 1.5158 level.