FXstreet.com (Barcelona) - After peaking out at 1.6067 (good for a high since Dec.22) at the opening of the European session, the pound has quickly lost its earnings versus the dollar and is testing the support area of 1.6000 at the time of writing.

The 1.6000 area has operated as a key support area ever since May of this year, with today's Asian session being no exception.

According to Nadeem Walayat of Marketoracle.co.uk, the sterling is targeting immediate support at £/$1.57 which implies it may temporarily bounce from there back through £/$1.60 before the eventual break.

However, Walayat added a break below £/$1.57 would target a trend to below £/$1.40.