Forex: GBP/USD sinks beneath 1.5100

Cable has continued in early Asia-Pacific Monday the collapse initiated during late Friday after the announcement of the rating agency Moody's of the downgrade to the UK, setting new lows since July 2010 at 1.5069, ahead of the area in 1.5050 where market sources reported options barrier protection. The pair recovered to 1.5128 last, still losing -0.24% for the day, and -1.25% from Friday highs. UK BBA mortgage approvals at 09:30 GMT will be only risk event for the London session ahead directly related to Pound, data that has been picking up steam since mid last year.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The hourly chart shows a strong bearish momentum due to the opening gap, and the pair needs a couple hours to digest such movement and see indicators turning a bit more real over price action,” the analyst says, adding: “In bigger time frames, the bearish momentum is also strong, with 20 SMA now capping the upside well above current price, all of which suggests bears will remain in control,” she concludes.

Valeria finds support levels at: 1.5070, 1.5030 and 1.4980, while resistance levels at: 1.5130, 1.5180 and 1.5240.