Currencies

LONDON (ShareCast) - With no particularly significant UK data out this week and US Q3 GDP due out Thursday, expect the pound to remain a little soft after Friday's declines while the US dollar will probably regain centre stage this week.

GBPUSD - the pound closed at 1.6310 on Friday and has tested the neckline from the old head and shoulders pattern at 1.6240/50 in Asia trading. As mentioned previously, a break through this key support would continue the losses of the past couple of days and target the a test of 1.6000 and the October lows. Expect to find some resistance on rallies around 1.6380 and 1.6440/50.

EURUSD - still continues to remain supported at the 1.4980 area while running into resistance around 1.5060. A break higher still targets the 1.5160 area, while a break below the 1.4980 support targets 1.4930 and 1.4880.

EURGBP - continues to remain supported on the back of sterling weakness as it broke Friday's resistance at 0.9200, and heads towards the old Fibonacci resistance at 0.9270. Expect the pair to trade in that range with a slight upward bias over the course of the week.