Archived IMT (2010.09.29)

GBPUSD FAILS TO KEEP UP WITH EURUSD after fresh evidence of weakening UK housing (mortgage approvals at 7-month low, M4 money supply growth at new low of 1.9%). As GBPUSD struggles to regain $1.5840s (76.4% retracement), GBP downside seen more optimal against JPY and CHF, as GBPJPY eyes 131.70, followed by 130.80. GBPCHF seen retest 1.5200 lows. Meanwhile the case for higher EURUSD (above $1.38) was outlined in previous IMT. Tonights September release of UK GfK consumer confidence (11:01 GMT) exp at -19 from -18 could also see further losses in GBP crosses in Asia trade nearing the aforementioned levels.