FXstreet.com (Barcelona) - The Pound's decline from Thursday high at 1.6565 high on Thursday, has extended during European session Friday to a two-weeks low at 1.6300 before bouncing to 1.6350.
The Pound is trading on a steady bearish bias since topping at 1.6740 on Septemer 10, and according to IanColeman, collaborator at FXstreet.com, approaches a key level at 1.6294: We may stall at 1.6294 with a previous low and descending trend line. If we break here I am looking for 1.6160. This is the neck line on the head and shoulders formation on the daily chart that we have been discussing for some time. A break there and maybe GBP will become the carry trade of the future!
At the moment, the Pound trades at 1.6340, with initial support at 1.6290/00 (Sept 4 low) and below here, 1.6235 (Sept 3 low) and 1.6200. On the upside, resistance levels lie at 1.6400 (Sept 15 low) and above here, the Pound could find resistance at 1.6455 intra-day high and 1.6540.