GBP/USD has fallen all the way to the 1.6450 area as it’s relentless decline extends during the early afternoon. EUR/USD is revisiting session lows near 1.4130 in sympathy, weighted down in part by a wave of EUR/JPY sales after that cross broke through 137.50.
EUR/USD is expected to outperform GBP/USD on dips with orders books begining to see an influx of buy orders below the 1.4100 level. We’ve picked up no hint of similar activity on GBP/USD books.
GBP/USD is extremely oversold on the short-term charts so we would be very reluctant to sell weakness in that pair.
