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Forex: GBP/USD threatening 1.5100 support

Cable is currently at 1.5107 near session lows at 1.5100 round, retracing from yesterday's highs at 1.5220, and only 37 pips above record 30-month lows printed Monday. Pound is the weakest currency among majors in last few days, ahead of another important day for the GBP/USD, as Bernanke will take the stage for second day testifying at 15:00 GMT before the House Financial Services Committee. But before that, for the London session ahead, MPC member Bean will speak at 09:20 GMT, followed by UK second estimate GDP q/q at 09:30 GMT, along with Prelim business Investment q/q and Index of Services.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The daily chart maintains a strong bearish momentum, and spikes higher will likely continue to be understood as selling opportunities,” she suggests, adding: “As for the short term, the hourly chart shows a limited bearish tone as per recent range, with the 1.5120 offering short term support: once below, a retest of the weekly low at 1.5070 is likely, yet if this last gives up, a quick run towards 1.5000/30 could be seen,” the analyst concludes.

Valeria sees support levels at: 1.5120, 1.5070 and 1.5030, while resistance levels at: 1.5210, 1.5265 and 1.5300.

Forex Flash: USD/JPY Q2 target at 97 – JPM

“The main driver of JPY weakness has been an 'inflation expectations bubble' spurred by unrealistically high hopes for Abenomics,” say Global FX team at JP Morgan, with USD/JPY targets now “raised to 94 for Q1, 97 for Q2 and Q3, and 96 for Q4.”
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Session Recap: Markets consolidate; Euro awaits news from Italy

A session of consolidation in Asia ahead of a key Italian bond auction later today. The Australian Dollar has been the currency most pressured, although quite relative, since ranges have averaged 30 pips the most. The 1.02 contention area continues to offer reliable support for now, with very heavy turnover near the level reported.
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