FXstreet.com (Barcelona) - The Pound has weakened further in early European session and decline from 1.66.25 high last Friday has extended to 1.6340. At the moment, the Pound trades right above session low.

below 1.6340, next support level for the Pound could be located at 1.6375 (Aug 18 low), and once below here, 1.6200. On the upside, resistance levels lie at 1.6440/50, and above here, 1.6525 and 1.6570.

According to Jamie Saettele, technical analyst at DailyFX, the Pound could perform an inverse head and shoulders formation and target year highs: A range has taken hold between 1.6660 and 1.6260. On intraday charts, the consolidation looks like an inverse head and shoulders. Trading through the top of the range exposes Fibonacci resistance at 1.6793 followed by the 2009 high at 1.7047. Looking out further, targets in the event of a breakout are round number resistance at 1.7500 and Fibonacci resistance at 1.8238.