GBP/USD Daily

Resistance 3: 1.5050

Resistance 2: 1.5000/10

Resistance 1: 1.4950

Latest New York: 1.4542

Support 1: 1.4500

Support 2: 1.4440/50

Support 3: 1.4400

Comments

Rate falls back as stops fire off under the 1.4650 area; rate dragged lower with EURO but cross-spreaders likely pressuring the most. Highs rejected as profit-taking drops rate; tests of the psychological 1.5000 area now complete with a pullback in the works; big question is where the bulls will take a stand again. Rate likely to find buyers on any dip to the 1.4500 area as this was the breakout area. Rate is still holding the 100 day MA nicely and aggressive traders can look to buy dips. Traders note support is likely firm above the 1.4650 area but dip under clears stops quickly. The shorts have lost control of the market above the 1.4440 area now; traders report stops in-range adding for two-way action. Test of further lows likely to encourage a round of short-covering.

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

4:30am GBP CPI y/y

4:30am GBP RPI y/y

4:30am GBP Core CPI y/y

4:45am GBP MPC Member Fisher Speaks

Tentative GBP MPC Member Sentance Speaks

Analysis by:Forex Trading - Written by Jason Alan Jankovsky

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