The Pound has found support at 1.6165 low on early European session, and the pair has bounced up to reach 1.6300 area which is being tested at the moment, after having reached session high at 1.6315.
In case of consolidation above 1.6300, next resistance levels lie at 1.6390 (Dec 1 low), and above here, 1.6450 and 1.6475 (Dec 8 high). On the downside, support levels lie at 1.6250/70 (OCt lows), and below here, 1.6165 session low and 1.6125 (Sept 30/Oct 8 highs).
On a wider perspective, Nicole Elliott, senior technical analyst at Mizuho Corporate Bank observes thee recent week's downtrend as a corrective move, and advices fot signs of bottomming: "The move is corrective so watch once again for signs of forming an interim base today and maybe through to year-end." Beware thin year-end markets.
European markets are going lower on Wednesday with investors optimism dampened by downbeat Japanese GDP data, and news about a credit-rate cut on Greece, which add to concerns about Dubai's debt crisis; on FX markets, Euro and Pound attempt to pick up from lows while Yen strengthens across the board.
Eurostoxx 50 Index drops 0.7%, while the German DAX index trades 0.65% down and the French CAC Index sheds 0.5%. In the UK, the FTSE Index trades 0.45% below its opening level.
Banks' stocks are mixed with Standard Chartered dropping 0.8% despite news about its income and pre-tax profit reaching the highest levels for the year so far. On the positive side, Volkswagen shares have soared 2.0% up after the carmaker announced its alliance with Suzuki, and the purchase of 19.9% of the Japanese company's stake.
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