Forex: GBP/USD: Further probes into the 1.6675/1.6745 band cannot be ruled out - Commerzbank

Thu, Nov 5 2009, 08:12 GMT
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FXstreet.com (Barcelona) - The Pound bounced up aggressively on Tuesday and from 1.6220, the pair rallied to 1.6600, getting back in two days all the ground lost since October 29, and according to Karen Jones, technical analyst at Commerzbank, there is still room for further appreciation.

The Pound has recovered, according to Jones and a re-test of 1.6675/1.6745 area should not be discarded: "GBP/USD has recovered, while further probes into the 1.6675/1.6745 band cannot be ruled out, this has provoked failure on numerous occasions and it has proved to be an effective short term ceiling."

In case of reaching such levels, Jones expects the pair to turn down towards 1.6300 area: "We again look for the near term rally to fail and sell off to the 1.6281/00 support. Key nearby support lies at 1.6200 (50% retracement), it is now exposed, failure here will cast the market back into the bottom part of the range at 1.5708/1.5690."

GBP/USD

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