Pound Sentiment to Turn ‘Bearish’ on Drop Below $1.635, RBS Says

By Matthew Brown

Aug. 11 (Bloomberg) -- The pound will fall further against the dollar if it drops below $1.635, Royal Bank of Scotland Group Plc said.

The so-called support level was created by the low on July 29, before the pound’s advance to a nine-month high on Aug. 6, Sydney-based RBS foreign-exchange strategist Greg Gibbs wrote in a research report today.

“A break of this support will turn sentiment more bearish,” Gibbs said. “There will be support around $1.6200, $1.6000 and $1.5725.”

The pound was little changed at $1.6483 as of 7:45 a.m. in London. A support level is where buy orders may be clustered.

To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net