FXstreet.com (Barcelona) - Pound's rejection at 1.6600 area during early Asian session has pulled the pair back to levels below 1.6500 to test levels below 1.6480 area, a key level for the bears, according to Charmer Charts.

Carol Harmer, technical analyst at Charmer Charts affirms that levels below 1.6480 could lead to 1.6410 low: back below 1.6480 sees 1.6425/10. Sellers will cover to here. Buyers will be about, but they will take flight if the market is below 1.6400. You would find sellers driving this lower once more to 1.6320. Here all shorts are to be covered. Re-sell below 1.6310 for 1.6270/50 where once more you would cover all shorts and only..repeat only... go short on a break of 1.6220.

On the upside, Harmer advances seller's stops at 1.6650: Sellers at higher levels have stops above 1.6650. There is lots of resistance at these higher levels and to give Cable any chance of coming back to 1.6270 this 1.6650 level has to hold. If it fails to hold, all bets are off on the downside and the market will react higher back to minimum target of 1.68.