FXstreet.com (Barcelona) - The Sterling has weakened on early European session and the pair dropped 100 pips in a sudden move from 1.6580 to 1.6485 to return to current levels below previous support at 1.6550, on the back of a fresh August high in EUR/GBP.

If the Pound returns above 1.6550, next resistance level would be at 1.6600 and above here, 1.6660/65 (Aug 13 high). On the downside, support levels lie at 1.6500 and below there, 1.6430 (Aug 10 low) and 1.6390 (Aug 12 low).

EUR/GBP rally from week low at 0.8490 on Monday has extended to 0.8655, the highest level since late July, although the pair has dropped back to levels around 0,8625. On the upside, resistance levels lie at 0.8655 (Jul 29 high) and 0.8685 (Jul 27 high). On the downside, support levels are 0.8625 and 0.8570.