GBP/USD extends gains to above 1.2450 as EUR/USD nails correction target

Following on from the previous update, noting the negative reaction to the US PMI data releases, the EUR/USD has now nailed the previously noted correction target at 1.0709. That price level represents a 38.2% correction of the fall from the prior high, at 1.0885, to the most recent low at 1.0601. The high seen has been set at 1.0710. Elsewhere the Pound has taken full advantage of this relapse in the dollar and now lifted above 1.2450 this afternoon. The combination of the lower US yields and disappointing data coupled with the comments earlier from the BOE chief economist have all come together to help the pound snap its recent downside run. The high seen so far this afternoon has been set at 1.2457. It is currently trading at 1.2443