FXstreet.com (Barcelona) - Pound's rally from 1.5895 area on Jan 7 has stalled at 1.6350 area, and the Pound is easing to levels approaching 1.6305, which, according to Ian G Coleman, collaborator at FXstreet.com, could accelerate downtrend.
The pair might have finished an ABC Correction and pullback below 1.6305 might turn the pair bearish, says Coleman: hr you can see this finishing in a wedge after a perfect ABC correction. We would want to see a break of the trend line at 1.6305 to turn the pair bearish.
On the upside, a bullish move above 1.6371 would trigger bulls, according to Coleman: MACD is showing signs of divergence to sell. A break through 1.6371 would negate this view.