FXstreet.com (Córdoba) - Cable extended its gains against the Dollar and rose to 1.6648 posting a fresh intra-day high but after the release of the existing home sales the pair pulled down to 1.6605. GBP/USD currently trades at 1.6620/25, 0.72% above today's opening price. Resistance levels, at the moment lie at 1.6675/85 (Nov 20 high) and above here 1.6700 and 1.6755 (Nov 19 high). On the downside, support levels lie at 1.6600 and below at 1.6530 and 1.6495/00.
Mohammed Isah, analyst at FXTechstraegy, comments: The pair followed through lower on its nearer term declines off the 1.6875 level on Friday decisively violating its short term trendline and taking out the 1.6514 level. This development continues to put GBPUSD under pressure with risk seen towards the 1.6260 level especially now that a bearish engulfing candle pattern (top reversal signal) was printed the past week supported by a negative RSI. This leaves a challenge on its recovery from the 1.5706-1.6875 levels targeting the 1.6260 level, its Nov 03'09 low and then its Oct 26'09 low at 1.6249.