FXstreet.com (Barcelona) - The British Pound has set a bottom on its last week's downward trend, on its fail to break 1.4137 support level, to react upwards towards 1.4606 level.
Mohammed Isah, technical analyst at FXTechstrategy rebound from 1.4137 could drive the Pound above 1.4600:
With the inability of the pair to break and close below the 1.4137 level, its Feb 12'09 low pushing it back into a positive weekly close territory, its Feb 13'09 high(daily chart) at 1.4605 will now be targeted having closed above the 1.4352 level, its Dec 31'08 low on Friday. The next upside target on continued offensives lies at its Jan 16'09/Feb 09'09 highs at 1.4981/86.
On the downside, Isah forecasts the following scenario: Alternatively,if the pair eventually breaks below the 1.4137 level, lower prices should ensue towards its Feb 02'09/Jan'2002 low at 1.4045 with a loss of there paving the way for a decline towards the 1.3682 level, its Jun'2001 low and then its YTD low at 1.3504.We retain our view that the latter level could traded once 1.4137 and 1.4045 level are taken out.