Forex: GBP/USD: Pound, sideways between 1.6500 and 1.6565 ahead of BoE

Thu, Nov 5 2009, 11:44 GMT
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FXstreet.com (Barcelona) - The Pound has been moving in a range from 1.6500 and 1.6565 during the European session, after decline from yesterday's high at 1.6600 and ahead of the BoE's monetary policy decision.

On the upside, the Pound needs to break above 1.6602 level to reduce downside risk, according to Mohammed Isah, technical analyst at FXTechstrategy: "A decisive break and hold above the 1.6602 level, its Oct 29’09 high and the 1.6692 level, its Oct 23’09 high must occur to reduce its current SH downside risk. If this materializes the 1.6740 level, its Sept 11’09 high will be targeted."

Failure at 1.6600 would set the pair looking towards 1.6327, says Isah: "Failure at higher price will put supports located at the 1.6327 level, its Nov 02’09 high and the 1.6260 level, its Nov 03’09 low under pressure with a break targeting its Oct 30’09 high at 1.6124."

GBP/USD

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