FXstreet.com (Barcelona) - Sterling broke on Monday below last two weeks' range and the Pound ht a fresh 4-month low at 1.5705 before bouncing back to levels right below 1.6000, although, according to Karen Jones, technical analyst at Commerzbank, the Pound remains biased to the downside, targeting 1.5690.
Sterling's current rally, according to Jones, is corrective in nature, and the pair will remain negative while below 1.6195/1.6235: We would allow for a near term corrective rebound, however this should remain relatively tepid. The market has recently topped and while capped by 1.6195/1.6235 (the break down point for the top pattern), will remain negative.
Furthermore, Jones advances that the Pound is on its way South, targeting 1.5690: We look for failure and below 1.5690 will continue to target initially 1.5520 (the 55 week ma) and then 1.5270. Slightly longer term the top measures to 1.5135.