Forex: GBP/USD: Pound reaches 1.6500 low

By IBTimes Staff Reporter | November 24 2009 5:29 AM

FXstreet.com (Barcelona) - Pound's retreat from Monday's high at 1.6650 has extended on early European session to test 1.6495/00 support area, which so far remains intact, while the Pound approaches oversold levels on hourly charts.

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On a wider perspective, Greg Holden, technical analyst at ForexYard observes a bullish cross on daily charts: There is a fresh bullish cross forming on the daily chart's Slow Stochastic indicating a bullish correction might take place in the nearest future. The upward direction on the hourly chart's Slow Stochastic also supports this notion.

At the moment, the Pound is trying to bounce from 1.6495/00 support, below here, next support levels lie at 1.6460/65 (Nov 20/23 low) and 1.6400 (Nov 4 low). Resistance levels are 1.6585, and above here, 1.6650 (Nov 23 high) and 1.6700 area.

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