Resistance 3: 1.9780
Resistance 2: 1.9720
Resistance 1: 1.9680
Latest New York: 1.9610
Support 1: 1.9600
Support 2: 1.9550
Support 3: 1.9520
Rate reverses hard again after strong rally on Friday, Rate likely to see support come in around the 1.9630 area but volatility could whipsaw from that area. Fundamentals still suggest a lower GBP and the failure to extend gains above the 1.9850 area so soon after Friday’s reversal argue for a continued downside after a bounce is possible. Continue to expect a lot of sympathy trade with EURO; the cross-spreaders are having a field day with the Sterling crosses and I think the GBP may track EURO near-term. Need a close below the 100 bar MA to build argument for the short but volatility is higher so expect a rally back to test the breakdown.
Not a lot to do but wait in my view.
Data due Tuesday: All times EASTERN (-5 GMT)
Tentative GBP Halifax House Price Index m/m -1.1%
4:30am GBP Construction PMI 45.7
7:01pm GBP Consumer Confidence Index 68
Analysis by: Forexpros.com written by Jason Alan Jankovsky
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