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The Pound has stretched higher at European session opening, breaking through 1.5435/40 resistance to extend rebound from 1.5190 week low to 1.5475 so far, which according to Karen Jones, technical analyst at Commerzbank, is expected to fail at 1.5690/5710, and resume longer-term downtrend.
The pair might fond interim resistance at 1.5525/75, and strong resistance at 1.5690/5710, where Jones expects failure: "Rallies will find interim resistance at 1.5525/75 and strong resistance at 1.5690/1.5710. If challenged we would expect failure and the resumption of the downmove from this juncture."
On the downside, 1.5283 and 1.5190 are key levels to maintain near-term uptrend, says Jones: "GBP/USD remains underpinned near term by its 20 day ma at 1.5283 currently. This together with 1.5190 (this weeks low) must hold for a near term upside bias to be preserved."