Forex: GBP/USD, stronger ahead of FOMC, testing 1.6375

By IBTimes Staff Reporter | December 16 2009 10:16 AM

FXstreet.com (Barcelona) - The Pound has rallied on upbeat U.K employment data, and from session lows at 1.6230 during European trade, the pair has reached 1.6393 session high and is testing 1.6375 resistance area, the top of the last 5 days trading range.

Sponsorship Link

The pair keeps holding its past day's strength, according to Valeria Bednarik, collaborator at FXstreet.com, and downside moves will be corrective: Pound keeps holding its' past days strength, reaching at this moment the top of past days range. Hourly indicators seem a bit exhausted, yet 20 SMA along with bigger time frames indicators support the bullish bias, suggesting downside will remain limited, and mostly corrective.

On the upside, Bednarik points out to the 200-day MA and 1.6420/30 area as key levels to watch: 200 EMA in the 4 hours charts around 1.6420/30 will be key level to watch as an acceleration above it could confirm further intraday rises.

.