FXstreet.com (Barcelona) - The Pound has declined continuously during the current week, and from Monday's high at5 1.6625 on Friday, the Pound has reached levels right above 1.6300 with strong support at 1.6269, according to Karen Jones, technical analyst at Commerzbank.
Jones affirms that the Pound will drop to 1.6269 support, to perform a near term recovery afterwards: GBP/USD has eased lower, but will shortly encounter stronger support at the base of the range at 1.6269 (see
chart). We would expect it to hold the initial test and provoke a near term recovery.
On the upside, resistance at 1.6783, guarding 1.7050, is likely to halt recoveries, says Jones: This support is reinforced by the 23.6% retracement of the entire move higher this year at 1.6210. Rallies from here will find good resistance at 1.6783 pivot line (initial 1.6670) - this guards the 1.7050 resistance.