FXstreet.com (Barcelona) - Sterling's recovery from 1.6150 low on Thursday has extended to levels above 1.6300 on European session, and the Pound has reached 1.6330 where the 38.20 Fibonacci resistance of the Friday-Thursday decline lies.

At the moment, the Pound trades at a key resistance area, according to Carol Harmer, technical analyst at Charmer Charts: Now this is good resistance at 1.6305/20 and today you so not wish to see the market break above here. If it does then the downside pressure will be taken off, and bulls will be in with a good chance if taking this higher to 1.6450/80 to 1.6510.

On the downside, Harmer points out to 1.6270/80 area: Look to 1.6270/80 for early direction. If the market can stay trading below here then there is scope for further declines with 1.6160 once more the favoured support. Here sellers will be covering shorts.