Forex: GBP/USD makes 10-year volatility lows while around 1.5950

FXstreet.com (Barcelona) - Volatility in Cable keeps creeping down, making a fresh staggering 10 year low with average 67 pips in daily range, on last 14 trading days, even lower than the 75 pips was doing by mid year 2007, before the financial melt down started. One has to go back to 1996 to see an even lower volatility. In this environment, Cable is back to where it was by early Sept, last at 1.5949, up for the week some +0.37%.

In words of Valeria Bednarik, Chief Analyst at Fxstreet.com: "Pretty much unchanged from mid European morning, the GBPUSD upward momentum was interrupted around 1.5977, from where the pair fell back to test support around 1.5920. So far, the level held although the pair holds to a bearish tone according to the hourly chart, as indicators head south below their midlines and 20 SMA caps the upside." The analyst adds: "only a break below mentioned support will confirm a negative day for Pound, with 1.5850 then at sight."

With British Bankers' Association Mortgage Approvals at 09:30 GMT as only risk event for Pound apart from news coming out of the second round of the Ecofin, which could impact EURGBP cross, Valeria finds support levels at: 1.5920, 1.5885 and 1.5850, while resistance levels at: 1.5985, 1.6025 and 1.6065.