GBP/USD charted an inside day to leave our negative bias intact. We look for losses to the one year uptrend at 1.6067. We note that the 23.6% retracement of the entire move up from May 2010 cuts in here at 1.6155 and we would lighten up shorts in this vicinity.
EUR/USD saw a rebound yesterday, and while we would allow for a further small bounce, we currently expect this to remain fairly tepid. The market has recently charted an outside day to the downside (Friday), and a key week reversal.
USD/JPY remains sidelined, recently we have seen a weak break of its short term down channel and as a consequence we still believe that the market is attempting to stabilise at the 80.00/79.80 support/target.
Commerzbank Corporates & Markets
Technical Research