Forex: GBP/USD flat above 1.5200

FXstreet.com (Barcelona) - The sterling keeps last week’s positive momentum trading above the key level of 1.5200 on Monday, also lifted by the generalized optimism after Cyprus reached a last-minute deal.

According to the last CFTC COT report, the FX Research team at TD Securities informed “Investors remained sour on the GBP and extended net short positions, now the largest net short since October 2011. A turn in UK data with the stronger retail sales report has provided a lift to the GBP since then however, and likely reduced the number of shorts”.

At the moment, the cross is up 0.02% at 1.5234 facing the next resistance at 1.5266 (Upper Bolliinger) followed by 1.5330 (high Feb.22) and then 1.5452 (high Feb.20).
On the other hand, a breakdown of 1.5090 (low Mar.21) would bring 1.5079 (MA21d) and then 1.5061 (MA10d).

Mar 25, 2013

Asian markets cheer Cyprus bailout deal

An agreement between Cyprus, the EU finance ministers and the Troika reached earlier today is being cheered by investors. Japan’s Nikkei Stock Average (+1.69%), South Korea’s Kospi (+1.49%), Hong Kong’s Hang Seng (+0.59%) and India’s Bombay Sensitive (+0.59%) edged higher on Monday, along with most Asian equity indexes and the exception of Mainland China’s Shanghai Composite (-0.12%).

Forex Flash: EUR/USD may test minor resistance at 1.3075 today – Commerzbank

Minor resistance around the 1.3075 March 12 high stands to be tested today, according to Commerzbank analysts, expecting 1.3107/40 (March 15, December 5 and January 8 highs) to cap the last few days’ advance. “Should this not be the case, the 55 day moving average at 1.3238 may still be reached before renewed downside is being seen”, wrote analyst Karen Jones.