The GBP/USD
was hit hard again this morning and remains technically vulnerable to sustain
more losses in the sessions ahead. Traders say that weekend reports playing up
the possibility of a rate cut when the BOE announces their decision on Thursday
and the report that Vodafone was mulling the possibility of paying 25 bln USD
for Deutsche Telecom"s US subsidiary T-Mobile were catalysts for the sharp fall
this morning. Some traders say that those reports merely provided the excuse for
the market to gun stops below 1.7670. Whatever the case, the GBP/USD looks in
trouble technically. There isn"t any support worth noting until the May 14, 2004
low around 1.7480 and many technical analysts have targeted major fibo support
at 1.7310 as the objective of this adjustment lower. This level is the 38.2 fibo
of the 15-year plus low of 1.3685 and the 13-year high around 1.9550 and should
provide considerable support. The GBP/USD trades 1.7598/1.7603。