GBP/USD’s been under pressure this morning as the cross targets a barrier at 0.8300 (0.8299 Asian high).
Middle Eastern names have apparently been seen selling cable earlier this morning but bids ahead of 1.6110 are currently deterring further falls and technical support lies below at 1.6089 ( Friday’s low). Offers remain up above at 1.6180/00 (1.6182 Jan 10 high , Kijun line 1.6186).
Citi has been on the wires ( Dow Jones reporting) suggesting any pull backs in EUR/GBP will offer up buying opportunities on the basis of sterling’s diminishing safe-haven demand , weak UK data and a potential sovereign downgrade, but states that caution should also be exercised. Cross bids are now seen 0.8270/80, with offers remaining in place ahead of the 0.8300 barrier.
Cable’s trading around 1.6135 after lows of 1.6115, with the cross around 0.8284
