GBP/USD forex technical analysis round-up: Jul. 20

The Pound was slightly decreasing in value against the US dollar today, trading at 1.6120 as of around 6:30 A.M., GMT.

The GBP is down 0.022% on the day and has reached a session high of 1.6142 with a low of 1.6096 so far.

Market sentiment was bolstered as yields on Italian and Spanish government bonds retreated slightly after rising sharply on Monday amid fears over sovereign debt contagion in the euro zone.

On Thursday, euro zone leaders were to meet in Brussels in an attempt to finalize a second 110 EUR  billion bailout for Greece and discuss the overall financial stability of the single currency bloc. The pound is seen as particularly vulnerable to the debt crisis in the euro zone due to the exposure of British lenders to euro zone sovereign debt and because of the UK’s close trade ties with the region.

Later in the day, US Existing Home Sales (MoM) are to be released at around 3:00 P.M. GMT. It measures the annualized number of existing residential buildings that were sold during the previous month as measured by the National Association of Realtors. The previous figure was listed at 4.81M and the forecast for this reading is 4.92M.

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