Resistance 3: 1.3150

Resistance 2: 1.3100/10

Resistance 1: 1.3030

Latest New York: 1.2986

Support 1: 1.2850/60

Support 2: 1.2800/10

Support 3: 1.2750/60


Rate follows GBP higher but still lower on the day despite new highs in New York at 1.3004 at writing; drop is less volatile and the rate holds tech support at 1.2850/60 area. Rally all day today suggests a short-squeeze is in the works. Stops baked on the dip under 1.2880 again overnight; stops increasingly likely around 1.3030 area and layered above. Bulls are attempting to find a bottom. Bottom may be forming around the 1.2850 area as it has bounced three-times from there. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Close over 1.3000 to end the day today will be seen as positive for a rally. Semi-official and sovereign bids and offers seen last week. Technical levels around the 1.3300 area now likely to offer resistance so expect two-way action and consolidation. Aggressive traders can look to buy the next dip.

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

2:00am EUR German Import Prices m/m

4:00am EUR German Ifo Business Climate

4:00am EUR Current Account

Forex Analysis written by Jason Alan Jankovsky, featured by