FXstreet.com (Barcelona) - Risk aversion continues leading forex market movements, with stocks falling in all sessions on worries about worsening economic conditions all around the word. Early Monday, the decision by European Union leaders over the weekend not to coordinate a bailout for central and eastern European economies has boosted risk aversion, knocking European currencies and leaving dollar as the only possible safe haven.
Gbp slumped to its lowest level since late January as traders anticipated another interest rate cut and a shift to quantitative easing from the BOE at its policy meeting Thursday. Pound is the most damage currency and continues to pull lower. The pair remains under strong selling pressure, and a break under 1.3956 minimum will open doors to longer term falls between 1.38/1.39 levels, that if gives up will send the pair to retest the 1.3500 minimum's zone. Inside a daily descendant channel, longer term perspective could change bias only above the 1.4560.
EUR /USD - No change from previous views, the pair remain bearish with no technical signs of turning to the upside yet. Under 1.2540, first support for today, the pair could retest the 1.2513, so far the year low, with next supports at 1.2468 and 1.2423. Above 1.2620 will find resistances at the zone around 1.2660, where the fall will fill the opening gap left in Asia opening. Above it, consider 1.2695 zone and finally 1.2725/40.
GBP/USD - Quoting around 1.4000, technical indicators remain bearish in bigger charts, yet a bit exhausted in 4 hours one. As mentioned above, clear break of first support level at 1.3956, could send the pair to next supports at 1.3911, 1.3824 and finally 1.3745 zone. Resistances for the next hours will be at 1.4060, 1.4107, 1,4135 and 1.4210.