As mentioned earlier, a retest of the year’s lows is on the cards for cable and we could get it as soon as today with the way things are going. The technicals are siding overwhelmingly with the dollar right now as the retracement bounce in cable fades. The same can be said for most other major currencies against the greenback as well.

GBP/USD is now down 120 pips today to 1.2190 but it isn’t the only dollar pair down over 1% on the day. The aussie and the kiwi are facing similar losses with AUD/USD down to 0.6965 and NZD/USD down to 0.6295 on the day.

It’s a bloodbath out there.

• USD/JPY: Up, up, and away
• Cable poised to revisit the year’s lows as UK leads the recession race
• Dollar in firm control as market jitters reverberate
• AUD/USD poised for a run at the May lows as risk jitters escalate

This article was written by Justin Low at www.forexlive.com.