The markets were mostly quiet in the overnight session, which could be a precursor of things to come ahead of the week-ending economic data. The Bank of England and the European Central Bank are scheduled to release their decisions on monetary policy Thursday morning ahead of this weekend's G-7 meeting.

EUR/USD made a push to a 1.2965 high in early London trading before retreating back to the 1.2920 area support. We currently consolidate around 1.2930. Both EUR/JPY and USD/JPY are trading heavy ahead of their respective support levels of 155.15 and 120.10. 155.15 will be a particularly interesting level to watch. It's possible we'll be setting up long trades here with stops below the figure for tonight. The Cable daily count is one of the cleaner on the board and is calling for a trendline break down in C to the projected 1.9310 area support.



For this afternoon, I will be looking to get short a one-third position between 1.9610-20. Stops should be just above the low of minor wave I at 1.9630. From there, we're going to do our best to add to the position on a breakdown through the 1.9540 area support. Back tonight with an update.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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