FXstreet.com (Barcelona) - The Pound seems to be on a consolidation phase after rally from yesterday's low at 1.4110. Sterling has remained trading between 1.4340 resistance level and 1.4255 support .
According to Mohammed Isah, technical analyst at FXTechstrategy, yesterday's hammer figure on the hourly chart suggests a trend swing: Although a fourth day of downside losses was recorded at the end of Monday trading session, the formation of a hammer candle now suggests that a temporary bottom may be forming. In such a case, a follow through higher on the mentioned hammer must occur to trigger further upmove towards the 1.4305 level, its Mar 06'09 low with a cut through there setting the stage for additional upside gains towards the 1.4662 level, its Feb 23'09 high
On the downside, Isah advices to watch 1.4660 level for a downside reversal: On the other hand, while the 1.4662 level remains unbroken, risks exist for price declines towards the 1.3845 level, its Mar 18'09 low and then the 1.3655 level, its Mar 11'09 low .Daily stochastics and RSI remain bearish as well, pointing towards further weakness.