FXstreet.com (Barcelona) - The Pound has reversed direction after failing to hold above resistance level at 1.3805, and has reacted down, advancing towards 1.3650 intra-day low.

If 1.3650 fails to support the Pound, next support level would be 1.3600, in case of a decline below here the pair would find last support level at 1.3500 (Jan 23 low) before dropping to historic lows.

On the upside, above 1.3805, the Pound could attempt a test to 1.3910, and in case of a successful move, next resistance level would come at 1.3955 (Mar 2 low) before 1.4040 (Mar 5 and 6 low).

Greg Holden, technical analyst at Forex Yard, expects some upward corrections during the day: This pair's recent drop in value continues to hold the price in the over-sold territory on the RSI of the 4-hour and daily charts, signaling upward pressure. While the momentum appears to remain downward, we may likely see a number of upward corrections throughout the day. Buying on the lows and selling on the highs of these fluctuations will be a good strategy today.