FX : GBP/USD: Pound recovery from 1.6115 extends above 1.6200
FXstreet.com (Barcelona) - The Pound has strengthened during European session and, after having tested 1.6115 intra-week low, the Sterling recovered some of the ground lost yesterday, reaching levels above 1.6200, after having hit an intra-day high at 1.6218.
Inital resistance area lies at 1.6225 and above here, 1.6280 (Sept 1 pivot point) and then 1.6380 (Serpt 1 high). On the downside, initial support remains at 1.6115 and below there, 1.6035 (jul 14 low) and 1.5940.
Despite the recent pick up, Mohammed Isah, technical analyst at FXTechstrategy, continues seen the Pound in a downtrend: "With price collapse taking out the 1.6152 level, its Aug 27’09 low on Tuesday, GBP remains susceptible to the downside in the nearer term and now looks to head towards it strong support standing at the 1.5982 level, its July 08’09 low and then the 1.5798 level, its July 08’09 low. Its daily RSI which is now bearish and trending lower is supportive of this view."
