FXstreet.com (Córdoba) - The recovery of the Pound against the Dollar after falling to 1.6243 (intra-day low) found resistance at 1.6305. GBP/USD failed to hold above 1.6300 and regained the downside. Currently trades at 1.6271/75, 0.52% below today's opening price.
Strongly bearish, pair has tested strong support zone around 1.6250, having reached an intraday low of 1.6243. An acceleration trough that level, should send the pair lower, to test the 1.6200 area quite quickly, with next support at the 1.6160 area, said Valeria Bednarik, chief analyst at FXstreet.com.
Despite falling against the Dollar, Cable is stronger against the Swiss Franc. GBP/CHF is rising for the seventh consecutive day and currently trades above 1.7000. The pair peaked at 1.7031, reaching the highest price since November 18.
Trapped under the weekly Ichimoku 'cloud' and retracement resistance (GBP/CHF), sterling has now formed a shallow 'double bottom' against Fibonacci support at 1.6250, Nicole Elliott, technical analyst at Mizuho Corporate bank says. A weekly close above 1.7000 should add a little more upside pressure for a squeeze back up to 1.8000.