GBP/USD Bearish But Buoyant GBP/JPY Temper Losses

        0039 GMT [Dow Jones] GBP/USD is likely to consolidate with a bearish bias Monday after hitting a 14-month low of 1.5591 on Friday. The pair is being undermined by expectations U.K. interest rates will remain on hold for longer than some had forecast after last week's dovish Bank of England quarterly inflation report; and sterling sales on cross trades versus major currencies. But GBP/USD losses are tempered by sterling demand on a buoyant GBP/JPY cross after very weak Japan 3Q GDP data. The daily chart is negative-biased as the MACD indicator is bearish, the slow stochastic measure stays suppressed at oversold levels, and the five- and 15-day moving averages are declining. A drop below 1.5591 would expose downside to 1.5504 (Sept. 2, 2013, low). Resistance is at 1.5711 (Friday's high); a breach would temper the negative near-term view, exposing upside to 1.5780 (Thursday's high). Spot GBP/USD is at 1.5679. (jerry.tan@wsj.com)
        (END) Dow Jones Newswires

        November 16, 2014 19:39 ET (00:39 GMT)