Resistance 3: 1.5000

Resistance 2: 1.4950/60

Resistance 1: 1.4880

Latest New York: 1.4471

Support 1: 1.4470/80

Support 2: 1.4450

Support 3: 1.4400


Rate continued lower into next support level before a dead cat bounce. No sign yet of the bottom firmly in after failing to hold the 1.4500 handle during the day. Cross-spreaders continue to sell GBP across the board. 2008 lows likely target but sellers are drying up in my view as volumes have been light on this break. Spillover from EURO likely but action still technical. Bears took a stand above the 1.5250 area last week; likely they will look to cover into significant lows—look for two-way action into this bottom. Sellers likely active suggesting a dip back to potential support around the 1.4500 area; but a short-covering rally is increasingly likely now. Two-way and firmer action due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone.

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


Forex Analysis written by Jason Alan Jankovsky, featured by