FOREX NEWS

Wed, Dec 23 2009, 07:16 GMT FXstreet.comm (Barcelona) - Pound's decline from 1.6410 high on December 16, extended on Tuesday below 1.6000 to hit a fresh 2-month low at 1.5920 before picking up, and consolidate during Asian session, in a range between 1.5940 and 1.5975. Resistance levels lie at 1.6030 (Dec 21 low), and above here, 1.6050 and 1.6125. On the downside, initial support remains at 1.5920 (Dec 22 low), and below here, 1.5850 and 1.5825. GBP/JPY has remained consolidating in a range from 146.20 to 146.70, during Asian session after uptrend from Friday's low at 143.65 was capped at 147.05 high on Tuesday. Support levels lie at 146.00 and 145.35. Resistance levels lie at 146.70 and 147.05.

While longer-term and medium-term technicals now warn of a major shift in the structure, which favors additional USD gains, shorter-term technicals are stretched, with the daily RSI dropping below 30 last Thursday. Remarkably, the daily RSI in the major had not been below 30 since October of 2008.