FXstreet.com (Barcelona) - The Sterling has extended its decline from 1.6380, intra-day high, against the Dollar in the American session with the pair trading below 1.6300 level and and testing daily lows close to 1.6260. Currently the pair is trading around 1.6275/85, 0.10% below today opening price action.
According to Karen Jones, Analyst at Commerzbank, the Cable's outlook is negative and a close below 1.6210 will launching the pair to the 1.5800 level: The outlook is negative following the erosion of its channel support and Fibonacci retracement. A close below 1.6210 will be significant - as it will confirm the 1.7040 high as an interim top and target 1.5800/1.5690 enroute to 1.5275. The market will remain directly offered intraday while capped by 1.6441/49 (resistance line and 55 day ma). Technical indicators are negative and the MACD is below zero for the first time since March.
Commerzbank expects a weak Pound: Shorter term (1-3 weeks): Ofered below 1.6450 target 1.5690. Medium term (1-3 months): Triple top on weekly RSI is negative. Target 1.5275