Resistance 3: 1.4420

Resistance 2: 1.4380

Resistance 1: 1.4330/40

Latest New York: 1.4210

Support 1: 1.4120

Support 2: 1.4050

Support 3: 1.3980


Rate rallies to resistance at the 1.4330 area and corrects back after FOMC; USD appears to like the news but GBP holds support ahead of the close. Holding 23 year lows so far and a pullback likely to be bought so expect whipsaw. Light stops seen on the move over the 1.4250 area as late shorts get squeezed but big move still coming. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Short-squeeze likely in progress after first attempt to rally was sold back but recovers. Rate trading on technical’s now. Signs of the bottom may be showing up as smart buyers reported in GBP Wednesday and Thursday night last week. Spillover from EURO likely but modest. Look for two-way action into this bottom. A short-covering rally is increasingly likely now. Late sellers likely in or hurting.

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

2:00am GBP Nationwide HPI m/m

12:00pm GBP MPC Member Blanchflower Speaks

7:01pm GBP GfK Consumer Confidence

Forex Analysis written by Jason Alan Jankovsky, featured by