Forex: GBP/USD slips to previous 5-month lows area, below 1.5650

Cable has slipped from weekly highs yesterday by early London trade at 1.5810 to recent fresh weekly lows at 1.5645 all the way in a single day, without any significant retrace in between, down already -0.98% since previous weekly close Friday. The pair goes back this way to fresh 5-month lows area printed past Wednesday, prior to incoming BoE chief Mark Carney comments that lead Cable to print fresh 6-day highs on Friday at 1.5843.

For the London session ahead focus will be centered at UK CPI figures at 09:30 GMT, along with tentative BoE inflation letter, once RICS house price balance data was published early in Asia today showing a decline of -4%, slightly worse than previous at -1%, but still in an uptrend since late 2010. FTSE futures are pointing for a lower open, while Hong-Kong, Singapore and mainland China kept on closed over holidays.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The hourly chart shows indicators still pointing for a bearish continuation after a limited upside correction, with 1.5680 now as immediate short term resistance,” the analyst says, adding that in case the pair lost now key support at “the 1.5620/30 area,” GBP/USD “may see a stronger slide with 1.52 now at sight,” Valeria notes.

Immediate support to the downside for GBP/USD lies at Feb 05/06 5-month lows 1.5630, followed by Aug 10 lows at 1.5574, and Aug 02 lows at 1.5486. To the upside, closest resistance shows at yesterday's NY session lows 1.5652, followed by Feb 03 lows at 1.5680, and Feb 05 London's session lows at 1.5725.