Learning Trade Forex

Mon, Nov 16 2009, 10:58 GMT

FXstreet.com (Barcelona) - Pound's rally from 1.6515 low in November 12 has been capped on Early European ttrade at 1.6750, and the Pound has dropped about 80 pips to hot an intra.day lowa at 1.6670. At the moment, the Sterling trades at 1.6680.

According to Stoyan Mihaylov, technical analyst at Deltastock.com, the Pound could decline to 1.6612 support: "The uptrend from 1.6515 has peaked at 1.6753 and a larger slide is to be expected, towards 1.6612 support zone. The overall bias remains positive for 1.6840, en route to 1.6932, but keep in mind, that current uptrend is probably the last leg of the rise from 1.5706 short-term bottom."

On the downside, below 1.6685/00 support, the Pound could find support at 1.6630, 1.6570 and 1.6515 (Nov 12 low). On the upside, resistance levels lie at 1.6735/50 (intra-day highs), and above here, 1.6800 (Nov 11 high) and 1.6845 (Nov 9 high).