Is Pound Sterling Set For Another Leg Lower?
- Failing to break above resistance at 1.6250, pound sterling has declined by 0.09% on the day to 1.6181. Remaining below 1.6200 at the moment, the major currency is likely set for another leg lower given the massive amount of resistance above.
- Any correction in the short term is likely to meet with harsh resistance at the descending 1.6300-1.6238 trendline that is reinforcing the psychological 1.6200 figure. The level is likely to remain intact even in the face of a correction back to the round figure.
- With a decline likely in the spot rate, initial support at the 1.6167 session low will be eyed, with stronger support at 1.6117 (38.2% fibonacci retracement from 1.5821-1.6300) expected to spark some bidding interest.
- Any upside potential resides in a resounding break of the 1.6200.
More technical analysis - Euro Breaks Rising Wedge Support