The pound has been under pressure lately and we could see selling in this pair continue as the recent unemployment data was announced to have hit a 12 year high. Mervyn King gave a speech yesterday and his comments were not received well by investors in the GBP as the pound dropped significantly verses the Dollar and all other currencies as well.
The current trend line support area is around 1.6350 which is clearly drawn on the chart for display. Look for the pair to test that level soon and if that support level is broken to the downside, the target price is 1.6113. Which is the last support point that was tested and not broken on the date of September 3rd 2009.
The current negative data may send the pair below the current support levels but in trading this pair be also looking for bounces of each support level to possibly enter long on a bounce or reversal.
