FXstreet.com (Barcelona) - The Pound is weakening sharply on early European session times and after being rejected at 1.6480 , the Sterling has given away more then 100 pips, breaking below 1.6400 to hit an intra-day low at 1.6350.

At the moment, the Pound struggles to remain above 1.6360 support area, in case of further decline, next support could be at 1.6245 (Oct 19 and 26 lows), and 1.6125 (Sept 30, Oct 8 high). On the upside, above 1.6400, the pound could find resistance at 1.6440 (Oct 27 high) and above here, 1.6475 intra-day high and 1.6550.

According to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, the Pound will remain moving between 1.6665 and support around 1.6300 support: Sterling is trapped below important resistance around 1.6665 and support from the growing Ichimoku 'cloud' and Fibonacci retracement. This should dominate again this week so that Cable moves less than other currencies.