GBP/USD extends to 1.5975
FXstreet.com (Barcelona) - Cable continues to extend a nearly 3-month minimum, losing support at 1.6000 and reaching as low as 1.5975 in recent trade. The GBP/USD has experienced heavy bearish tendencies since the the BoE released the minutes of their last meeting showing it to be more dovish than what was expected, with the pair losing nearly 300 pips from it´s weekly high of 1.6261.
Giving a more in-depth technical analysis, Valeria Bendarik of FXstreet.com suggests: “Having reached the 1.5970 target zone, past April monthly low, the bearish momentum seems firm and further slides are to be expected in the cross, after some consolidation around current levels; the upside, should remain capped by 1.6020/30 area now. Lose of daily low, should trigger a continuation rally towards 1.5920 first and 1.5860 later.”
Bednarik adds: “Approaches to the 1.6030/60 area should be taken as selling opportunities today, with stops just above 1.6080 area.”
GBP/USD returns to 1.6200 area
Pound retreat from Friday’s high at 1.6200 has been contained at 1.6110 low on early London session and the pair has bounced up , to regain all the ground lost in Asia, to reach 1.6200 resistance area, aiming to retest the broken support line from May 2010 lows.
USD/JPY capped at 80.35
The USD/JPY has been steadily working it´s way back from Friday´s weekly low at the 80.00 technical barrier, adding nearly 40 pips before running into firm resistance recently at it´s daily high of 80.35. The pair has been by-and-large neutral throughout the day, due to low volatility in light of few events on the economic calendar.
