Forex: Pound extends rally, approaching to 1.6200

  @ibtimes on December 31 2009 6:42 AM

FXstreet.com (Buenos Aires) - Pounds continues rallying to the upside after yesterday's rally, and approaches to the 1.6200 level, gaining almost 4 cents from past Wednesday low of 1.5831. Supported by early news showing corporate credit availability improved in Q4, along with a mortgage demand rise in the same period, Pound holds the bullish momentum against major rivals, reaching the 20 SMA in the daily chart that holds a strong bearish slope, and should offer some resistance at current level, according to Valeria Bednarik, Fxstreet.com collaborator.

Bednarik says: despite strong bullish momentum Pound is actually testing a key resistance level that should at least halt current rally. An acceleration above 1.6200, favored by thin volume, could sent the pair higher, to test the 1.6250 area, also strong resistance level; over bought, pair has no signs of downside correction movements, yet under 1.6150, first support for next hours, corrective movement could extend to the 1.6100 area, ahead of 1.6060.

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