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LONDON (ShareCast) - Sterling has so far managed to hold onto the gains it has made over the past few weeks; despite Tuesday's awful GDP figures, and is currently treading water in a 200 point range on its trade weighted index.

However, there could be signs of some potential weakness as it does appear to be running into a bit of a wall around the 84.60/70 resistance level. It is, however also finding a degree of support around the 82.70/80 area, despite breaking below the trend line at 83.65, mentioned earlier this week. Certainly this week's mixed data has made for a turbulent few days and the future prospects will probably be no different in terms of volatility.

A break out from the range of 84.70/82.70 towards the downside could potentially target the break-out support level at 80.00, while a break higher would target a potentially larger move towards the September 2008 lows, around 87.90/00.

Against the Euro the pound has lost some ground but the key 0.8640 level has remained intact. As long as this level holds, then the pound has further room to strengthen towards the longer term target at 0.8240 mentioned in the 18th June piece.

After the bearish signal posted on the daily charts on Tuesday, the pound has traded in a broad range against the dollar, but has continued to trade at progressively lower levels. The key support remains around the 1.6280 level, a break of which could well target 1.6180/90 in the short term, before a possible test of the lows of early June around 1.5800/10.

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