Forex: GBP/USD at session low below 1.6280

By IBTimes Staff Reporter | January 15 2010 6:29 AM

FXstreer.com (Barcelona) - The Pound has pulled down from from 1.6355 4-week high amid Dollar strength, reaching levels below 1.6285 to hit session low at 1.6265.

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If the pair consolidates below 1.6285, next support levels could be at 1.6245/50 (Jan 14 low), and below here, 1.6195 (Jan 11/12 highs) and 1.6140. On the upside, resistance levels lie at 1.6340/55 area (17 Dec high - intra-day level) and above here, 1.6410 and 1.6450.

According to Ian Coleman, collaborator at FXstreet.com below 1.6305, Pound's Bias would turn to bearish: 1 hr you can see this finishing in a wedge after a perfect ABC correction. We would want to see a break of the trend line at 1.6305 to turn the pair bearish. Remember, breaks from wedges can be very strong and can target the beginning of the formation.

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