GBP/USD Daily

Resistance 3: 1.9820

Resistance 2: 1.9780

Resistance 1: 1.9740/50

Latest New York: 1.9722

Support 1: 1.9650/60

Support 2: 1.9600

Support 3: 1.9550

Comments

Rate drops under the 1.9700 handle to start, look for a test of the 1.9600 area within 24 hours. Close under the 1.9700 handle again needed to wash out the longs. Bounce back to trade at or near the 1.9720 area into the close suggests a rally is coming.

Upside remains limited in my view but ranges can be wide as evidenced by the past few days of trade. Sell rallies if not short; buying dips dangerous.

Drop to under the MA’s very important, long selling wick makes sell side attractive for further losses. Need down bars with higher volume to confirm; not getting that today.

Some pressure from EURO remains. Cross-spreading for Yen, Swissy and EURO evident; look for additional sell-off to end the week. NFP today increased volatility and negative close is great for follow-through Monday

Analysis by: Forexpros.com written by Jason Alan Jankovsky

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