Cable continues its slide, taking the spotlight off the dollar for a change in the ugliest duckling content. Fibo support at 1.6262 (76.4% of 1.6740/1.6115) has given way and cable has fallen to 1.6235 where there is modest chart support. There is not much to support the pound if that level gives way until the 1.6115 lows from early this month.
Risng concerns over the UK’s public finances, continued banking woes and anticipation of more quantitative ease are all weighing on the pound.
EUR/GBP is not to be outdone today. It trades at 0.9050, eying resistance at 0.9068, the 61.8% retracement of the 0.9486/0.893 decline.