Likely so – especially given the decline from this morning.  Following a price action top out at 1.5803, the pound sterling has plummeted to trade at 1.5665 in the New York morning.  Forming a consolidative base, the currency is likely to form a support base against the US dollar in the near term – especially with technical support levels at 1.5657 expected to keep at least some buying interest in the GBPUSD pair.

Following a bout of consolidation, the currency is anticipated to correct higher – based on technical indications and the absence of other fundamental drivers.  Helping the UK currency to fail at resistance of 1.5800 was the release of the Bank of England’s meeting minutes.  The early morning release showed a wider divide among monetary policymakers in regards to recent stimulus upgrades.  Although relevant, this event is likely to dissipate – as with other releases of this nature in the past.

Technical indicators have plummeted through to oversold territory – with Stochastic currently at 16 and well below the 20 benchmark for oversold conditions.

As a result, we anticipate the price action to correct back to short term targets at 1.5727 in the meantime, with a more meaningful pullback likely to 1.5764.

Article source: http://www.fxstreet.com/technical/analysis-reports/fx-technical-tweets/2012-02-22.v02.html