FXstreet.com (Barcelona) - The Sterling's bounce against the Greenback from 1.6265, intra-day low, has been capped at 1.6345 with the pair falling to test 1.6300 level again. Currently the pair is trading around 0.10% above today's opening price action.
According to Karen Jones, Analyst at Commerzbank, the Cable's outlook is negative and a close below 1.6210 will launching the pair to the 1.5800 level: The outlook is negative following the erosion of its channel support and Fibonacci retracement. A close below 1.6210 will be significant - as it will confirm the 1.7040 high as an interim top and target 1.5800/1.5690 enroute to 1.5275. The market will remain directly offered intraday while capped by 1.6441/49 (resistance line and 55 day ma). Technical indicators are negative and the MACD is below zero for the first time since March.
Commerzbank expects a weak Pound: Shorter term (1-3 weeks): Ofered below 1.6450 target 1.5690. Medium term (1-3 months): Triple top on weekly RSI is negative. Target 1.5275