Cable headed south from the European open, on the back of Eastern European selling of GBP/JPY. Asian sovereign demand based cable's fall at an intra-week low of 1.9929, after the tripping of sub-1.9950 sell stops.
1.9950 is now a resistance level. Upper obstacles include 1.9971 (today's Asian session base), 1.9988 (today's Asian session top), 2.0000 and 2.0017 (yesterday's 8-week peak). An exotic option barrier is tipped at 2.0020.
Touted bear targets south of 1.9929 include 1.9900/10, 1.9870 and 1.9850. A 1.9850 option strike rolls off at today's 10am Eastern NY cut (14:00GMT).
US durable goods orders will be disclosed at 12:30GMT. Forecast: down 1.0% m/m, ex-transport +0.3% m/m. A two-day FOMC meeting also begins today. BoE Governor King, and four other MPC members, will address the UK TSC tomorrow.
Tony Blair will tender his resignation as UK Prime Minister in less than two hours time, with Gordon Brown invited to form the next government circa 13:00GMT (BBC website). Brown is expected to name his cabinet tomorrow. Alistair Darling is favourite to become Chancellor.
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