Monday’s Dec 17th midday analysis -13.00 GMT

Euro continued Friday’s down move and already covered more than 100 points in today’s Asian and European session; the pair retraced a bit towards the 1.4400 round number but is once again heading lower and we could see the 1.4300 bearish target getting hit later on today.

GbpUsd hit the resistance at the 2.0200 in the Asian session and than moved sharply down until it hit the 2.0100 support and the ascending trendline that marks the lower part of the monthly bullish channel. We notice a bullish divergence formed on the 1 hour charts supporting a bounce from the 2.0100 level. A failure to break a new low will definetly give bulls reasons to try and push the pair higher.