FXstreet.com (Barcelona) - The Sterling has attempted to break higher and to set a base at 1.6350 session low although the pair has been unable to break above 1.6350 and bounced back to levels within previous range.

At the moment, the Pound trades at 1.6325, with resistance levels at 1.6340/60, and above here, 1.6425 and 1.6490 (Oct 0 high/Oct 22 low). On the downside, support levels lie at 1.6240 (Oct 19 low, and below here, next support level lies at 1.6125 (Sept 30, Oct 8 highs) and 1.5930.

Resistance levels at 1.6354 and 1.6425 will cap the Pound which according to the Kshitij Consultancy Service team might extend decline to 1.6200: Further rise beyond the immediate Resistance at 1.6354 (21-Week MA) should find another strong Resistance near 1.6425. We would then expect the pair to fall towards 1.62 if this Resistance holds strong. This would further increase chances of the Friday's fall extending towards 1.60 over the course of the week.