GBP/USD fell sharply in Asia after a flurry of GBP-negative press reports over the weekend, particularly the Times interview with the MPC’s Posen in which he argued for upping the BOE’s asset purchases (with printed pounds).
As long as cable hold a above the 1.6125 level, it retains a positive tone over the medium-term after putting in a thunderous low last week at 1.5705. Trend followers will be keeping an eye on the 10 and 21-day moving averages which are set to cross bullishly in the 1.6040s soon. Resistance is eyed at 1.6456 in coming sessions if cable regains its mojo (or if shorts get impatient and set off another wave of covering.
Bids are seen now in the 1.6250 area while solid offers are eyed on bounces to 1.6400, traders report. Cable trades at 1.6318.
