FXstreet.com (Barcelona) - The Sterling is dropping like a stone against its major counterparts on a mix of economic repoorts and BoE Governor's Merving King's words about the convenience of a weak Pound to stabilize UK economy. The sterling has already lost about 200 pips dropping from 1.6385 to a n intra-day low at 1.6185.
At the moment,, the Sterling hovers around 1.6200 level, with next supports at 1.6190, and below here, 1.6170 and 1.6130 (Sept 21 low). On the upside, the pair might find resistance at 1.6265, (Sept 21 high) and above here, 1.6310 and 1.6350.
EUR/GBP hassoared to 5 -months high after King's words, and from levels around 0.8990 the Euro has broken above 0.9080 resistance to hit a fresh 5-month high at 0.9123. Next resistance levels lie at 0.9125/35 and 0.9155. On the downside, support levels are 0.9080 and 0.9040.