Forex: GBP/USD: Market, negative while capped below 1.6110 - Commerzbank

 @ibtimes on October 09 2009 3:51 AM

FXstreet.com (Barcelona) - The Pound as been rallying strongly on late Wednesday and Thursday reaching to a fresh intra-week high at 1.6100 before retreating lower. Despite recent rally, Karen Jones, technical analyst at Commerzbank, sees the pair negative while below 1.6110.

Recent rally has been corrective, and according to Jones, the Sterling remains biased to the downside: GBP/USD is showing signs of near term strength - this is viewed as corrective and is expected to remain capped by key nearby resistance at 1.6110/82 (break down point for the top pattern). While capped here, the market is viewed in a negative light.

For the next weeks, Jones expect the Pound to decline towards 1.5690/1.5571 area: We look for failure and continue to target initially 1.5690/1.5571 (Fibonacci retracement and the 55 week ma) and then 1.5270. Slightly longer term the top measures to 1.5135.

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