Resistance 3: 1.4950

Resistance 2: 1.4880

Resistance 1: 1.4740

Latest New York: 1.4556

Support 1: 1.4420/30

Support 2: 1.4350

Support 3: 1.4280


Rate is two-way and firmer due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone. Rate is likely to have a knee-jerk reaction to more rate cuts due later in the week but with a new 2008 low late in the month last month the probabilities are good that any rate cut is factored in. Rate sees upside stops cleared around the 1.4680 area overnight putting the next level resistance around 1.4780 in play. Toolbox signals a trend sell as active from late in December likely running out of steam around the 1.4400 area so if holding shorts be nimble. Spillover from EURO not there today as spreaders unwind. Traders note solid two-way action. Sellers hold control above 1.5100 area so far but if unable to make a new low or test the low—expect a short-squeeze..

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

5:30am GBP BRC Shop Price Index y/y

Forex Analysis written by Jason Alan Jankovsky, featured by