FXstreet.com (Barcelona) - The Sterling is going through a downward correction after having being rejected at the 1.4950 resistance level, and the pair has given away 150 pips already, dropping to 1.4715 minimum level.

According to Greg Holden, technical analyst at Forex Yard, the Pound had reached overbought territory and correction was imminent: The 4-hour chart shows the Cable trading in an overbought state on the RSI with a bearish cross on the pair's Slow Stochastic Oscillator. This indicates the potential for a downward correction. The Bollinger Bands show the most recent price move has originated at the upper border, indicating the potential to go all the way to the lower border.

Next support level could be at the 1.4690/1.4700 area, and below there, probably 1.4600 and 1.4520. On the upside, resistance levels could lie at 1.4770 and above there, 1.4820.

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