FXstreet.com (Barcelona) - Sterling's rally from Monday's low at 1.6240 has been capped at 1.6445 on early European session, and the Pound has retreated back below 1.6400 to reach day-low levels at 1.6365.

The Pound lies now right above 1.6365/75 support area, and if the pair breaks lower, nexrt support level could be at 1.6310 and 1.6280. On the upside above 1.6400, resistance levels lie at 1.6445/65 (Intra-day high/ Sept 23 high), and above here, 1.6500 and 1.6530 (61.8 retracement of the Aug- Oct fall).

According to Carol Harmer, technical analyst at Charmer Charts, the Pound should hold above 1.6240: Support is at 1.6240/20. This is important, and should now hold. Be a buyers on weakness to these lower levels and only reverse if the market makes a break below 1.6175.