FXstreet.com (Barcelona) - The Pound remains rallying on Friday, for the sixth consecutive day, reaching levels at 1.6450 the 55-Day MA, where, according to Karen Jones, technical analyst at Commerzbank, Sterling's rally is expected to stall and come under bearish pressure.
Resistance levels at 1.6351 and 1.6412 should provoke failure on the Pound, says Jones: Sterling is inching slowly highly and has reached 1.6351 (55 day ma) . This together with resistance at 1.6412 should provoke failure. Our view is unchanged, we look for the rally to stall at the 55 day ma and come under pressure.
On a longer term perspective, Jones expects the Pound to decline towards 1.5830 en route to levels below 1.5700: We target 1.5832(December low) en route to 1.5690/82 - the 38.2% retracement of the entire move in 2009 and the 55 week ma.