FXstreet.com (Barcelona) - Pound's rally from 1.6285 intra-day low has been capped at 1.6440, and the Pound has returned below 1.6400 , trading at levels around 1.6370 at the moment of writing.

On a longer term perspective, Mohammed Isah, technical analyst at FXTechstrategy, observes the Pound struggling against downtrend resistance from Aug 3 high: GBP continues to struggle within the mentioned channel since breaking into it the past week following its failure at the 1.6692 level, its Oct 23'09 high. A clearance of that level and the 1.6466 level, its Sept 23'09 high must occur to reverse its weakness and open up upside risk towards the 1.6740 level, its Sept 11'09 high.

On the downside, Isah points out to 1.6124 support area: Support is located at its Sept 30'09 high at 1.6124 where a break will create scope for further weakness towards the 1.5708 level printed on Oct 13'09. Below there will trigger the resumption of its short term downtrend.