FXstreet.com (Barcelona) - The Pound has managed to hold gains on European session and the pair remains moving in a range roughly from 1.6355 to 1.6435, testing what according to Karen Jones, technical analyst at Commerzbank is a key area to negate bearish bias.

On the wekly chart, Jones observes the Pound trading on a negative bias while below 1.6435/70 area: For now a bearish bias will remain while capped by 1.6443/70, however a break back below 1.6135/15 is needed to alleviate upside pressure and re-target 1.5690 then 1.5270.

On the upside, above 1.6470, the odds for a re-test of 1.7000 area will increase, says Jones: Should the 1.6470/1.6535 resistance be breached we would allow for the recent high charted at 1.7040/45 to be tested - this is major resistance we would again allow for failure.