Resistance 3: 1.4850

Resistance 2: 1.4780

Resistance 1: 1.4700/10

Latest New York: 1.4572

Support 1: 1.4470/80

Support 2: 1.4450

Support 3: 1.4400


Rate firms after finding support at the 1.4490 area overnight; lower into support level before a dead cat bounce. Minor signs of the bottom firmly in after holding 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 Thursday: All times EASTERN (-5 GMT)