FXstreet.com (Barcelona) - Pound's rally from 1.6115 low on September 2 has been capped at 1.6740 high on Friday, and the Pound has broken below the upward trending support line (from Sept 2 low) around 1.6600 on Monday to hit a day low at 1.6520. Nevertheless, Mohammed Isah, technical analyst at FXTechstrategy, does not discard a new rally to year low 1.7040.

According to Isah, while above the MT Trendline, the Pound remains on the upside: We maintain that while the pair trades above its MT rising trendlinebias remains to the upside for the resumption of its MT uptrend now on hold. Resistance is located at the 1.7041 level with a clearance of there resuming its MT uptrend and targeting the 1.7200 level, its psycho level ahead of its Oct 20'09 high at 1.7518.