Archived IMT (2008.12.05)

GBP a major loser shedding over 2 cents to $1.4539 and inline to fall back to yesterdays latest 6 year lows at $1.4463. Although both EURUSD and GBPUSD are falling victim to the dollars risk-driven allure, euros declines remain more contained than cables, hence the recovery in EURGBP, which may regain 87 pence trend line resistance. Any recovery in US stocks is likely to boost GBPUSD and EURUSD back towards $1.4730 and $1.2750, while prolonged equity declines are seen extending the pairs towards $1.4530 and $1.2580.