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Pak Lai Ng, technical analyst at Forecast Pte, told Bloomberg that sterling resistance is at about $1.5870 and noted that at 09:23 in Tokyo today (September 20th) it fell to $1.5665.
The last time it fell to below $1.5489 - the 50 per cent retracement of its advance from a low of $1.4231 - was on January 10th.
Mr Ng observed that this suggests there is a strong downward trend and that the currency is likely to continue to decline.
"Even if there's a bounce, it will only be corrective. The downtrend is quite strong," he stated.
Yesterday morning, the pound sunk to its lowest level against the yen seen since January 2009 amid speculation about the future of the European debt crisis.
Posted by Greg Secker
