FXstreet.com (Barcelona) - Sterling has continued declining on early European session, and retreat from 1.6120 high on Thursday extends below 1.6000 at the moment of writing, with the Pound trading at 1.5985 at the moment of writing.

If the Pound consolidates below here, next support levels come at 1.5935 and 1.5855 (Oct 7 low). On the upside, above 1.6000, resistance levels lie at 1.6065, and above here, 1.6125 (Sept 30 high) and 1.6200.

According to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, teh technical pictire seems rather confusing: We urge extreme caution and a flexible outlook. While below the 'neckline' of the potential head-and-shoulders top we shall continue to allow for another downside probe of medium term Fibonacci retracement support first, and a rally to new highs later this year.