FXstreet.com (Barcelona) - Pound's attempt to pick up has been short lived and after a brief entry to levels above 1.6200, the pair has been capped at 1.6230 and fell below 1.6200 to levels right above intra-day low at 1.6170.
The Pound's is unable to break above its invalidated rising trendline on Wednesday and, according to Mohammed Isah, technical analyst at FXTechstrategy, the pair heads towards 1.6130 area: The pair's inability to break back and hold above its invalidated rising trendline saw it turning back lower Wednesday to close at 1.6353. It was seen following through lower in early trading today and now looks to head towards its Sept 21'09 low at 1.3132 with a break below there accelerating further declines towards the 1.6112 level, its Sept 02'09 low where a ceiling is expected.
On the upside, the Pound should break above the rising trendline in order to reduce downside pressure, says Isah: Its daily RSI has turned lower supporting this view. On the other hand, GBP must break back above its broken trendline to reduce its current downside pressure and open up additional upside towards the 1.6566 level ahead of the 1.6742 level.