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Forex: GBP/USD pounded below 1.5200

GBP/USD is literally being pounded at this moment at 1.5155, off fresh 2.5-year lows at 1.5129, down -0.58% for the Asian session alone, -2.2% for the week, and -6.77% for the new year. Pound is by far the weakest major currency among all for current week, falling 7 out of the last 9 days. Volatility is back on track, as it averages 120+ pips for last 14 daily ranges, bouncing from 10 year record lows back in late Nov.

“The hourly chart shows indicators still heading lower in extreme oversold level, with no signs of changing bias,” says Valeria Bednarik, Chief Analyst at Fxstreet.com, adding: “The 4 hours chart shows a similar picture, supporting a downside continuation in the pair. Renewed selling pressure below the 2012 yearly low 1.5236 should expose the 1.50 area for the upcoming days,” Valeria concludes.

For the London session ahead, following last bad data coming out of the UK, will be released Public sector net borrowing at 09:30 GMT along with 10 year bonds auction, followed by CBI Industrial order expectations at 11:00 GMT, ahead of plenty of data coming out from the US, including key CPI figures.

Immediate support to the downside for GBP/USD lies at recent session and fresh 2.5-year lows, as April 2010 lows as well, followed by April 16 2009 highs at 1.5070, and Feb 09 2009 highs at 1.4986. To the upside, closest resistance shows at yesterday's previous 2.5-year lows 1.5190, followed by yesterday's London session lows at 1.5280, and Tuesday's lows at 1.5420.

Session Recap: USD, JPY enjoy follow through in Asia

The Yen was the strongest currency in Asia, with the US Dollar following the Japanese tail very close by. The main moves in Asia were in the Yen, which continues to recover ground, despite price activity is becoming more and more erratic, with moves increasingly subject to a headline-by-headline basis on BoJ leading candidates jawboning. The Pound and the Euro, meanwhile, found no remedy to stop the bleeding, and both tumbled again in late Asia.
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