Resistance 3: 1.4600

Resistance 2: 1.4520/30

Resistance 1: 1.4450

Latest New York: 1.3915

Support 1: 1.3850

Support 2: 1.3800/10

Support 3: 1.3760


Rate falls hard as cross-spreaders sell GBP across the board. Overnight economic news seen as neutral; some rumor of UK bank downgrades adding pressure. Sell-signal from toolbox validated suggesting a test of the next major support area around the 1.3850 to 1.3780 area. Signs of the bottom after holding the 1.4500 handle last week negated near-term with offers likely back at the sell zone around 1.4450 area now. Cross-spreaders continue to sell GBP across the board. Volumes continue light on this break. Spillover from EURO likely. Look for two-way action into this bottom. A short-covering rally is increasingly likely now; looking for signs of late sellers.

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

4:30am GBP MPC Meeting Minutes

4:30am GBP Average Earnings Index 3m/y

4:30am GBP Prelim M4 Money Supply m/m

4:30am GBP Public Sector Net Borrowing

4:30am GBP Unemployment Rate

Forex Analysis written by Jason Alan Jankovsky, featured by