FXstreet.com (Barcelona) - Pound has picked up from fresh 3-month low at 1.5915 reaching levels above 1.6000, and the pair has remained moving from 1.5980 to 1.6335 during European session.

According to Greg Holden, technical analyst at ForexYard, yesterday's plunge opens the door for a bullish correction today: It appears that after yesterday's sharp downward movement, several signals point to a correction today. The 4-hour Slow Stochastic shows a fresh bullish cross, as does the daily MACD; with the price hovering in the over-sold territory on the 2-hour, 4-hour, and daily RSI.

Initial resistance levels lie at 1.6060, and above here, 1.6110 (End Aug, start Sept lows) and 1.6200. On the downside, support levels lie at 1.5980 (Jul 8 low) and below here, 1.5940 and 1.5900.