Forex: GBP/USD: Pound remains capped below 1.6600

Thu, Nov 12 2009, 11:58 GMT
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FXstreet.com (Barcelona) - Pound's recovery attempt from Wednesday's low at 1.6535 was capped on Asian session at 1.6625 and the pair remains trading below 1.6600 during Asian session, unable to return above 1.6600.

According to Mohammed Isah, technical analyst at FXTechstrategy, the Pound is under selling pressure, heading towards it support line at 1.6466: "It was seen in early trading today heading towards ST rising trendline currently at 1.6466 where a temporary halt is envisaged but if that snaps, lower prices could develop towards its strong supports at the 1.6249/60 area, its Oct 26’09/Nov 03’09 lows. We believe that level should provide a wedge and turn the pair back up."

On the upside, Isah points out to 1.6740 and the 1.6842 levels to eliminate downside pressures: "To the topside, the pair must break back above the 1.6740 and the 1.6842 levels to reverse its current downside threats and bring the 1.7041 level where its YTD high is standing with a penetration of there triggering the resumption of its medium term uptrend now on hold towards its .50 Ret (2.1160-1.3501)at 1.7314."

GBP/USD

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