Forex: GBP/USD pauses after 150 pips collapse previous session

By IBTimes Staff Reporter | January 08 2010 12:06 AM

FXstreet.com (London) - The pound has consolidated during the Asian session, with little in terms of significant swings. Pair lost over 150 pips in previous session as BoE held rates and expressed potential requirement for further QE this year. Pair current trades at 1.5943, around 50 pips up from the low hit in previous session.

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Versus the Greenback the sterling trades in a tight band right now, between 1.5951 and 1.5910. Both these bound can also be taken as primary support and resistance barriers. Pair will likely continue sideways with little in way of further cues between now and the headline NFP trade data, published later today.

The sterling has been pulled down both by Eurozone worries and more focussed concerns over the fiscal health of the British economy and government of late have been printing money as if it grows on trees.

Valeria Bednarik, collaborator at Fxstreet.com, guides us on the technicals: Hourly indicators show pair contained to the upside by 20 SMA, with indicators weak. Bigger time frames remain bearish with 1.6000 as first key resistance level to watch. Only confirmations above 1.6060 area could revert current bearish perspective.

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