Today’s headlines read the Bank of England were considering whether BPthey should cut the base rates by more than two points on November 6, but settled for a 1.5% cut so that they would have room to cut later on, and bolster confidence. Why is the Pound gaining ground (even if only limited ground) when faced with the prospect of further rate cuts? Obviously, it is all a matter of supply and demand at any point in time. For example, today Merrill Lynch has been mentioned as big buyers of Sterling related to Middle East investment into Barclays! Another rumor is MLL has an option payout if Sterling is above 1.5100 at ECB fix today. Bear in mind that these are only market rumors, and frequently, rumors are floated by interested parties. Being traders with limited resources, most of us should wait for low risk entry levels and position with the major trend. The trend for Sterling is still down. I see significant resistance around 1.5220 and so will be trying a small short if and when we get to near 1.5210 in the next 24 hours. If we don’t get here by tomorrow, I will forget this idea and move on! Take a look at the accompanying Sterling chart. As usual, I have drawn some Fibonacci retracements, but the key is really Elliot Wave Analysis, and Wave Analysis is more than drawing Fibonacci retracements! Enjoy.