Garter stitch: knit every row.
Pattern st : See chart.
Rib in round: *K2,P2,rep from* to end.
13 sts and 21 rows to 10 cm measured over pattern st
Poncho is worked in two pieces and then sewn together.
Using grey yarn cast on 133 sts. Work in garter st 5 rows and AT THE SAME TIME beg shaping in the middle during the 2nd row of garter st as folls:
RS: Dec row 1: K65, sl3,K1,psso = 2 sts are decreased, work to end = 131 sts.
Rep dec row 1 on foll alt row once and then every 4th row 29 times. AT THE SAME TIME when 5 rows of garter st are worked, beg and ending rows as indicated, cont in patt from chart I. as folls:
Row 1: Work 1 st as indicated in chart (from right end), repeat 2st patt to end. Work rows 1-92. Then rep rows 89-92. AT THE SAME TIME when 20th dec row has been worked, dec 1 st at each end on RS. Rep dec at each end every 4th row once and every alt row 7 times. Work until all decreases have been worked. Cast off 1 st at each end. Leave rem 51 sts on a holder.
Work as front.
Flatten the pieces to the desired dimensions on an even surface, wrong side up. Wet with water spray, and allow to dry.
Using black yarn DOUBLE and grey yarn DOUBLE embroider the pattern on rows 23-29. See chart II.
Using black, multi-blue and grey yarn embroider the pattern on rows 68-72. See chart III.
Join side seams using back stitch or matress stitch if preferred.
Using 40cm circular needle rejoin yarn to 102 sts from the holders. Work in rib in round for 19cm. Cast off sts in rib.
Using grey yarn cut 3 20cm long strands. Fold strands in half and using crochet hook pull folded end through bottom edge from RS to WS and pull ends of tassel through folded end. Tighten it. Attach tassel to every other st.