FXstreet.com (Barcelona) - Sterling has weakened on early European session and failure to break above 1.6550 resistance on Asian session, the Pound has dropped to test support area at 1.6450 which remains intact, and the Pound has bounced to levels below 1.6500.
On a weekly perspective, Mohammed Isah, technical analyst at FXtechstrategy, sees the Pound trading below MT trendline support: Although a halt in price saw the pair turning slightly higher off the 1.6273 level to close at 1.6501 the past week, it continues to trade below its broken MT rising trendline support. Unless we see a climb back above the mentioned trendline, risk remains lower and leaves the pair targeting lower level prices towards the 1.6196 level, its weekly ema, followed by the 1.6034 level, its July 13'09 low and then its July 08'09 low at 1.5984.
On the upside Isah points out to 1.6742 level: To the topside, halting its current weakness will pave the way for a challenge initially on the 1.6742 level, its July 30'09 high with a turn above there exposing the 1.7000 level ahead of the 1.7041 level, its Aug 05'09 high. Beyond there will invalidate and resume its medium term uptrend towards the 1.7100 level and subsequently the 1.7200 level.