Archived IMT (2010.01.05)

GBPUSD falls back below its 200-day MA after failing to break above the 38% retracement from the Nov high at 1.6236. We pointed out 1.6240 as a robust resistance in yesterdays IMT. Weaker than expected UK construction PMI prompted aggressive selling. Daily stochastics suggest prolonged fall towards $1.5945, followed by $1.5880. GBPCHF drops back below $1.65, with the likelihood of breaching $1.6430 support mounting.