The GBP/USD pair trades uneventfully around the 1.4500 level, unchanged ever since the day started and unable to react to market's improved mood. The dollar however, trades generally higher across the board, as during the Asian session, speculation that Japan will intervene further to weaken the yen sent the local benchmark, the Nikkei 225, up over 1,000 points.
In Europe, stocks opened strongly higher, with the London FTSE 100 extending its Friday's advance; however, the GBP/USD pair remains within a tight range. With no data in the UK and a holiday in the US, the pair will likely remain limited this Monday, with the risk remaining towards the downside as long as stocks keep running.
The technical picture, according to the 4 hours chart, is mild bearish, as the price remains below an horizontal 200 EMA and extending below the 20 SMA, while the technical indicators are heading south below their mid-lines, although with limited downward momentum. The main support now stands at 1.4410, with a break below it probably leading to a continued decline down to the 1.4330/50. A recovery above 1.4520 on the other hand, should help the pair to advance up to the 1.4560/80 region.
View the live chart of the GBP/USD
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