Resistance 3: 1.5420

Resistance 2: 1.5350

Resistance 1: 1.5280

Latest New York: 1.5111

Support 1: 1.4800

Support 2: 1.4720

Support 3: 1.4660


Rate makes highs into early New York; probes for stops over the 1.5000 and 1.5100 handle; inexplicable rally to the 1.5280 area finds more stops driving the thin market higher. Still seeing two-way and firmer action due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone. Rate likely to have a knee-jerk reaction to more rate cuts due tomorrow morning. Probabilities are good that any rate cut is factored in. 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 Thursday: All times EASTERN (-5 GMT)

Tentative GBP MPC Rate Statement

7:00am GBP Official Bank Rate

Forex Analysis written by Jason Alan Jankovsky, featured by