FXstreet.com (Barcelona) - The Sterling has continue with its decline against the Greenback from September 23 high at 1.6468 to post 1.5768 as lowest level since May 22 after collapsing 700 pips in 4 day sessions. Currently the pair is trading around 0.65% below today's opening price action at 1.5966 to the current 1.5860/70, consolidating previous low levels.
Ian Coleman, FXstreet.com collaborator, expects a lower movement: We got our break on the daily chart with the target being 1.4810 area. 1hr. I am not trying to ruin the party here but we may be due a small pullback. If we take 1.6134 as wave 1 then we are around 161.8% extension. I don't like that first wave count though, as wave 4 rallies higher than the bottom of wave 1! Something we do have however is divergence. A rally higher than 1.5890 should then take us to 1.6040 area. This is only a correction before the next move lower. (261.8% of wave 1 is 1.5140 which should be our first target).