Earlier dour comments from IMF’s Strauss Kahn have served to ratchet up risk aversion a couple more notches. EUR/USD and cable have given further ground.

EUR/USD is at 1.3870 with next technical support at 1.3850, while cable is down at 1.6310, technical support at 1.6290.

I haven’t had confirmed reports of such, but wouldn’t be surprised if there weren’t some decent buy orders lined up at 1.3850, with sell stops placed just below there.