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Forex: GBP/USD frozen around 1.5800 handle

Cable has been extremely quiet during the Asian hours, unchanged from previous weekly close Friday last at 1.5800 round, inside a tiny trading range 1.5784/1.5808. For the last 5 hours, the pair has been inside a 10 pips range, while all local markets but Australia and NZ were closed over holidays, and at exact same price it was 2 weeks ago by Jan 25.

With Eurogroup meetings taking place today in Brussels as main risk event for the day following the holiday in Asia, FTSE futures point for a flat open up +0.09%, ahead of tomorrow's UK CPI YoY. According to latest COT, commercial/hedgers traders have turned into net longs for first time since reached 1-year record high net short positions in Pound by late Dec last year, while speculators were holding the other side. As CMT and FXstreet.com Independent Analyst Fan Yang notes: “A return above 1.59 is needed to provide a short-term bullish outlook. Otherwise, the next support is likely near 1.55, 78.6% retracement and lows from June-July 2012 consolidation,” the analyst concludes.

Immediate resistance to the upside for GBP/USD shows at recent session highs as April 05/10 lows 1.5808, followed by Jan 25 highs at 1.5827, and Friday's highs at 1.5844. To the downside, closest support lies at recent session lows 1.5784, followed by Thursday's highs/Jan 31 lows at 1.5774/70, and Jan 30 lows at 1.5724.

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