Sterling is down 0.5% on the day after failing to rise above the 161.90 Fib. resistance The pair broke the short-term uptrend line and is now testing the 160.90 support area. Below 160.90, the next possible targets are a revel of 160.00 and 158.55. , pounds lose ground on Thursday to end a three-day recovery from the 158.90 area. The pair lost nearly 0.5% today, retreating from Wednesday’s high of 162.35 to test earlier resistance and turning support at 160.90. The pair failed to confirm the 38.2% Fibonacci resistance level at 161.90 on Wednesday and the pair has negative traction on Thursday due to sour market sentiment. TECHNICAL INDICATORS DOWN On the turn, GBP broke the trend support at last week’s low and is testing the aforementioned support area of 160.90 (December 21, December 27). If the MACD is in the downside on the -hour chart and the RSI is trading below 50, a confirmation below 160.90 would strengthen the bears and pave the way for the 160.00 pivot level on its way to a three-month low. at 158.55. Conversely, a positive reaction should break above the previous trend support, now at 161.30, and the Fibonacci resistance and 50-SMA confluence at 161.80. This would ease the bearish pressure and put the pair in focus at the December 28 high of 162.30.