FXstreet.com (Barcelona) - BoE´s governor Merving King has sent the Pound to the ground defending the Bank's idea of reducing rates on the Bank's deposits, and the pair has dropped from 1.6630 to 1.6475 low so far. At the moment, the Sterling tries to pick up although it still remains below 1.6500.

At the moment ,m the Sterling stands above support area at 1.6485 (Sept 8 and 10 low), and below here, next support levels could be at 1.6380 (end Aug/start Sept high) and 1.6340. On the upside, the Pound could find resistance at 1.6520 (Sept 14 low) and above here, 1.6570 and 1.6590 (Sept 8 and 9 high).

EUR/GBP has soared on King's comments and after bouncing at 0.8770, the Euro has rocketed to a fresh 3-month high at 0.8870. Resistance levels are 0.8875 and 0.8925. Support levels lie at 0.8830 and 0.8790.

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