Pound retreat from 1.6400 last week, found support at 1.5935/40 and bounced back to levels above 1.6100 in a move considered corrective by to Karen Jones, technical analyst at Commerzbank, and likely to cap at 1.6140/70.

Jones expects the Pound to be capped at 1.6140/70 and drop back to 1.5963: "GBP/USD’s rebound has started to gain traction and we would allow for a deeper retracement to 1.6140/70, where it should fail and sell off to retest the 1.5963 February low."

Breach of 1.5963 support area would reinforce the view of a significant top at 1.6400, says Jones: "The market is increasingly viewed as a top and failure at the 1.5962 February low on a closing basis will reinforce that view. Below here will target 1.5750 and then 1.5570."