FXstreet.com (Barcelona) - The Pound has weakened somewhat during the European morning trade and from intra-day high at 1.6565 ahead of the markets opening, the Pound has reached levels below 1.6500 to trade at levels around 1.6480 at the time of writing.

Next support levels for the Pound lie at 1.6450 (Sept 7 high/ Sept 9 low) and below there, 1.6380 (End Aug/start Sept highs) and 1.6340. On the upside, a bullish reaction above 1.6525, could find resistance at 1.6590 (Sept 8 and 9 high) and above here, 1.6620 (Aug 21 high).

According to Ian G Coleman, collaborator at FXstreet.com, the Pound faces two possible scenarios at this point: This could turn out to be a pause before the next break higher over the 1.7000 level or we could be looking at a possible Head and Shoulders formation. To the upside we have to be aware of 1.6925, to the downside 1.6155 (neckline).