FX Forex: GBP/USD: Pound drops lower; 1.6400 under pressure
FXstreet.com (Barcelona) - The Pound is weakening further on early European session and has broken through intra-week low at 1.6430 and is testing 1.6400 level at the moment of writing.
Initial support level lies at 1.6390 (61.8 Fib Jul/Aug move) and 1.6340/35 (Jul 30 low), below here, next support comes at 1.6320. On the upsidem initial resistance lies at 1.6435 (Aug 10 and 11 low) and above here, 1.6500 and 1.6525 (Aug 11 high).
According to Carol Harmer, Technical analyst at Charmer Charts, the Pound could drop as low as 1.6360: "Cable hasn't changed at all. Still going lower and below 1.6410 will confirm. Trendline comes in at 1.6360 with the 61.8% fib level at 1.6390. So 1.6360 is where sellers ought to initially cover."
