FXstreet.com (Córdoba) - Cable rallied across the board during the Asian and European session and currently is consolidating gains. GBP/USD peaked at 1.6300 (2-week high) and pull down finding support at 1.6210. The pair is now moving sideways in a range with the mention support and resistance at 1.6260. If the pair rises further, the next resistance lies at 1.6300 (intra-day high) and above at 1.6380/90 (September 24 highs).
Mohammed Isah, technical analyst at FXTechstrategy affirms: Momentum build up on the back of its two days of recovery saw GBP breaking through its key resistance standing at the 1.6124 level today (Sept 30'09 high). Maintaining those gains on a daily closing basis today should bring further strength towards its declining channel initiated from the 1.7041 level currently at 1.6460. We envisage this level (channel resistance) may provide strong resistance and turn the pair back down. If however that level gives in, higher prices could develop towards the 1.6463 level, its Sept 23'09 high. Its stochastics and RSI are bullish and pointing higher supporting this view.