As if the pound didn’t have enough problems, it is weighed down today by the 10-day moving average sliding below the 21 day average.
Japanese selling of GBP/JPY has been quite heavy today. Sounds like Mrs. Watanabe (The Japanese retail investor) is finally being stopped out of carry trades…Little support of note is seen on the charts until the 1.5800 level. Below that, we have the 38.2% Fibonacci retracement of the March/August rally at 1.5755.
Trailing stops are seen in the 1.6050 area, traders report.
