Today Forex Update :-
European stocks, slightly down on banks woes; Euro and Pound hold gains
European stock markets have opened Tuesday's session on a slight sell tone, as weaker financial sector has outbalanced upbeat corporate earnings in the U.S. Euro and Pound hold Asian session's gains. Eurostoxx 50 Index trades 0.50% down, while Geman DAX index drops 0.55% and the French CAC Index declines 0.45%.
GBP/USD: Pound, negative biased while below 1.6435/70 - Commerzbank
The Pound has managed to hold gains on European session and the pair remains moving in a range roughly from 1.6355 to 1.6435, testing what according to Karen Jones, technical analyst at Commerzbank is a key area to negate bearish bias.
On the wekly chart, Jones observes the Pound trading on a negative bias while below 1.6435/70 area: "For now a bearish bias will remain while capped by 1.6443/70, however a break back below 1.6135/15 is needed to alleviate upside pressure and re-target 1.5690 then 1.5270."
On the upside, above 1.6470, the odds for a re-test of 1.7000 area will increase, says Jones: "Should the 1.6470/1.6535 resistance be breached we would allow for the recent high charted at 1.7040/45 to be tested – this is major resistance we would again allow for failure."
