Forex: GBP/USD: Pound's rally might be capped at 1.6675/1.6745 band - Commerzbank

Fri, Nov 6 2009, 08:13 GMT
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FXstreet.com (Barcelona) - The Pound remains heading north on a strong pace, reaching levels above 1.6600, after soaring 300 pips from Tuesday's low at 1.6260, approaching Oct 23 high at 1.6695, which, according to Karen Jones, technical analyst at Commerzbank, might cap Pound's rally.

The area between 1.6675/1.6745 has proved an strong short-term ceiling, according to Jones: "We look for further probes into the 1.6675/1.6745 band to be limited, this has provoked failure on numerous occasions and it has proved to be an effective short term ceiling. We again look for the near term rally to fail and sell off to the 1.6282/00 support."

Resistance levels, according to Jones, lie at 1.6633, 1.6680/94 and 1.6745/65. On the downside, support levels lie at 1.6555, 1.6465/50 and 1.6281.

GBP/USD

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