FXstreet.com (Barcelona) - The Sterling has continued its decline against the Dollar during the European session after falling around 215 pips from 1.6675 in the early European morning to break 1.6520 support, trade below 1.6500 and hit fresh intra-day low at 1.6460.
Currently the pair is trading around 1.6470/80, 1.15% below today's opening price action at 1.6665.
Mohammed Isah, analyst at FXTechstrategy, comments: GBP ended a third-day of downside weakness on Thursday breaking below its short term trendline(clearly seen on the 4 hourly chart) drawn from the 1.5706 level and switching focus to the 1.6514 level where its Nov 12'09 is located. Further downside momentum if seen will pave the way for a run at the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. These two key levels must hold if tested to prevent the pair from declining further and targeting its big support standing at its Oct 30'09 high at 1.6124 level ahead of the 1.5706 level, its Oct 13'09 low.Itsdaily RSI is bearish and pointing lower supporting this view.