 Hello and welcome to CMC Markets on Tuesday the 24th of May and this week's weekly market update. Now this week I'm going to focus on the performance of the Pound and its ability over the past few days to have been able to shrug off the hyperbole emanating from both sides of the UK referendum debate if one can call it that. I think if currency markets are good for anything, it's being able to cut through the heat and not an awful lot of light, there's been a hallmark of this particular campaign from both sides. Over the past five days we've seen that the Pound has pretty much outperformed across the board gaining the most ground against the commodity currencies of the Australian and Canadian dollar as can be seen down here but also it's been able to shrug off an awful lot of the hawkish noises coming out of the US with respect to a potential US rate rise next month. We've seen a succession of Federal Reserve policy makers argue the case for multiple rate hikes not only this year but also in 2017 and by and large the Pound has been able to shrug them off even though it's probably performed the worst of all the G10 currencies we are still pushing up towards the upper end of the range of the past few months and that can be seen from this daily chart that I've got in the chart in front of me here. So we're going to move off the February lows we are continuing to trend higher we are finding a little bit of resistance above around about 146.5, 147 but ultimately as long as we stay above these two moving averages here which have now crossed over then the momentum does appear to be suggesting that we could well see further sterling gains and certainly in the context of sterling Aussie, sterling yen and Euro sterling were at some very very key levels in terms of potential sterling reversals so let's make a start first and foremost with sterling Aussie because on this particular chart the rebound has been quite notable for the fact that we've broken out of the long-term downtrend that we've been in since we posted those August highs we're also now pushing against the 200 day moving average. Currently we are looking a little bit overbought so that would appear to suggest that we're potentially running out of a little bit of steam in the short to medium term certainly if we look at it in terms of a Fibonacci retracement level as drawn in from here we can see straight away that we are approaching a very key resistance level on sterling Aussie we're currently just above 20350 which is those previous peaks here we're finding that 200 day moving average a pretty difficult nut to crack and that would appear to suggest that potentially we could be susceptible to a little bit of a pullback around about around about to the two level which is currently what supporting this current up move that we have here all we can also do is drill down a little bit into that in terms of the four hourly chart and actually drop a nice little trend line on there as well let's quickly change the color of that make it blue because it's a nice little uptrend and we can see that from the April lows we're in a nice little uptrend with a nice decent level of support just above the two level there and we do appear to be gaining a little bit of momentum similar sort of story on sterling yen obviously not as a significant an up move but what we're also seeing here is potentially a reversal pattern starting to take place we can see that could potentially be an inverse head and shoulders here with the left shoulder round about here the head just above the 150 level and the right shoulder here but what's very interesting here is they were pushing up against the resistance the cloud resistance from the upper Kumo line but we're also pushing against resistance from these peaks from March through April so momentum would appear to suggest that if we're able to push through the upper Kumo cloud and able to push through the trend line resistance just above 162 then we could well see further gains higher around about to the 200 day moving average which currently comes in around about the 172 area here last but by no means least having a look at euro sterling because once again here we look to be on the cusp of a significant break lower on euro sterling again this is a head and shoulders not an inverse one but we've certainly seen a significant break out here we had a bit of a rebound and below those lows around about 7690 but we've been able to stay below the neckline breakout that we saw from the break lower at the in the middle of last week and that does appear to suggest that as long as this move is sustained we can sustain a move down to around about 75 15 75 20 and the 200 day moving average so what we're seeing here is despite all of the hyperbole the negative campaigning the fact of the matter is that the pound is starting to strengthen now and I think that's probably as a result of some of the more positive polls in favor of the remain campaign that's diminishing market concerns that potentially could drive a sterling decline or a UK exit from the EU ultimately what we're seeing at the moment is I think there's the beginnings of a significant bout of sterling strength which on the basis of it at the moment will be more than welcome given how weak it's been since the end of November end of October beginning of November