FXstreet.com (Barcelona) - Pound's decline from 1.6412 high on December 16 has extended today to levels below 1.6000, dipping below the neckline of a head and shoulders formation shaped on intra-day charts, according to Ian Coleman, technical analyst at Turtle Index.

On the downside, confirmation of the mentioned figure, could lead to a downtrend towards 1.5778, says Coleman: 4Hrs we can see the head and shoulders formation. We broke the neckline on the 17th of Dec then went back to retest again. We do have some wave counts here but they are very erratic, however, 261.8% would take us down to the base at 1.5778.