Technical Analysis Reports

Resistance 3: 1.5200/10

Resistance 2: 1.5150

Resistance 1: 1.5080

Latest New York: 1.4926

Support 1: 1.4650

Support 2: 1.4580

Support 3: 1.4480/1/4500

Comments

Overhead resistance around 1.5100 holds on first try today, tracking EURO and equities for the most part. Traders note stops above the 1.5100 handle likely building near-term. Resistance is expected to hold rate for a pullback and aggressive traders can buy that dip if it comes. Cross spreaders continue to hold interest near-term; profit-taking likely to result in a squeeze on the further strength. Thin conditions continue to exacerbate moves. Some stops noted on the break back over the 1.4850, 1.5000, and 1.5050 areas yesterday; the rate continues two-way on the move. Technical trade overnight as traders decide near-term action with little to go on but the charts. BOE rate cut next month increasingly likely but that is likely completely factored in at this point. Traders note liquidity is only moderate and still on the lower side. Aggressive traders can look to buy the next dip.

Data due Wednesday: All times EASTERN (-5 GMT)

4:30am GBP MPC Meeting Minutes

6:00am GBP CBI Industrial Order Expectations

1:40pm GBP MPC Member Gieve Speaks

Forex Analysis written by Jason Alan Jankovsky, featured by forexpros.com