GBP/USD was unable to sustain a surge above 1.4550, falling back to lows of 1.4432 after trading to highs of 1.4663 in early Asian dealings. It is not hard to sell sterling on rallies given the negative news that continues to come out of the UK press. The market continues to anticipate that Marks & Spencer will warn on profits on Wednesday. The UK Independent notes estimates that a quarter of UK families will have no disposable income in 2009. More UK retailers are seen at risk of going into administration, with a forecast by the Forum of Private Businesses that 200,000 small businesses could go bust this year. The Times warns of a corporate UK refinancing time bomb with more than GBP50 bln of bank debt expiring and needed to be refinanced. Finally, the press is focused on expectations that the BOE could cut rates to the lowest levels since 1694. 1.4677 and 1.4800 remain key resistance levels on sterling. Support remains at 1.4380-1.4400.
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