 Hello and welcome to CMC Markets on Tuesday the 24th of February and the weekly market update. Now this week I'm going to revisit a couple of the charts that I did last week to try and take the conversation a little bit further. Now last week I talked about the pound against the dollar and I also talked about the dollar against the US dollar against the Canadian dollar. I think the reason I'm really focusing on these two pairs this week is there's going to be some significant central bank announcements from policymakers over the course of the week. Now we've already heard from Mark Carney this morning talking to the Treasury Select Committee about the prospects of a rate rise at some time this year and I think the key takeaway that I took from that meeting along with the minutes of the Bank of England meeting last week is that pretty much the Bank of England is about as clueless as we are with respect to when rates are going to rise in the short to medium term. I think the likelihood remains that interest rates will remain unchanged throughout the rest of this year. Certainly there does seem to be some division on the MPC about the likelihood of a rate rise this year and I think caution is really likely to be the key watchword. We've also got President Draghi talking this week and I think it'll be particularly we need to pay particular notice to what he has to say particularly with what's going on in Greece at the moment. We've just heard that Greece will get its four month extension to its bailout which should take concerns about a Greek exit off the table for the time being. It certainly doesn't remove the risk entirely but I think going forward that should underpin the euro and we've also got Janet Yellen talking on Capitol Hill over the next couple of days in our Humphrey Hawkins testimony and again we will be looking for clues as to the timing of when the Fed will be looking to raise interest rates and I think policymakers will be looking for I think some clear guidance as to when that word patience gets removed from the FOMC statement. Now she's probably not going to give any clues on that at a Humphrey Hawkins testimony but certainly I think she could give a steer one way or the other and we've also got Mr Pollos who's head of the Bank of Canada also speaking later today with respect to the Bank of Canada future Bank of Canada monetary policy so within all of that we're going to have a look at the pound against the dollar and we're also going to have a look at Dollar Canada in light of the charts that we talked about last week. So we'll make a start with the cable chart pound against the dollar and this will be the uncluttered chart not completely uncluttered I have put some retracement lines on it but only for the purposes of guidance now if you recall last week I talked about a potential bearish key reversal day and I put a arrow above that candle and I also suggested that I was a bit skeptical about it because it came so soon after what we could well be or what could well be a market bottom and I was right to be skeptical about it because we actually haven't been able to break lower yet and currently we're struggling to get through the 15480 level now why is 15480 significant it's significant in the context is that it was the lows at the end of December and it's also acted as a bit of a barrier over the past week but not only that it's also 23.6 Fibonacci retracement level from the 171.95 highs that we saw last year to the lows that we saw earlier this year just below 150. So let's move on to the four hourly chart because it gives us a better indication of how significant this 15480 level is and as we can see from this chart it does appear to be building up a little bit of a sideways consolidation below these short term highs. Now what I'm looking at at the moment is the support in the low 153 is around about 153.10 and probably 152.80 as well. Now the oscillator is currently looking a little bit overbought which does appear to suggest that unless we take out 154.80 we could get another drift back down towards the bottom of the range that we've seen over the past week or so while we remain above 153.152.80 then the bias for me still remains to the top side a breakout through 154.80 through 155.00 towards 156.00 if at any time we drop below 152.80 then really I would have to rethink that strategy and look for maybe a test back towards the 150.00 level but for the short to medium term currently I'm looking 154.80, 155.00 on the top side and around 152.80 on the downside. So let's move on to Dollar Canada. Now last week I highlighted the importance of that 123.50-60 area in the context of the current up move in the US dollar against the Canadian dollar and the correlation with the Brent price. Now the current weakness that we've seen in the Brent price has actually helped Dollar Canada rebound. The Canada weakened the US dollar strengthen. So currently that remains our line in the sand with respect to a decline in Dollar Canada irrespective of what the various central bankers say this week. Overall while we're above 123.50 then the prospect is we could well retest the highs that we saw at the end of January at the beginning of February just below 128. So that concludes this week's weekly market update just gives me an opportunity to plug next week's non-farm payrolls webinar that will be taking place on Friday at 1.15 but I will be talking to you well before then same time same place next Tuesday weekly market update until then this is Michael Houston talking to you from CMC Markets