Resistance 3: 1.4700/10

Resistance 2: 1.4650

Resistance 1: 1.4580

Latest New York: 1.4369

Support 1: 1.4320

Support 2: 1.4250/60

Support 3: 1.4200


Rate two-way again overnight, opens New York lower and holds into next level of support around the 1.4320/30 area. Technical trade the rule to start the week with cross-spreaders on the sell side of GBP overnight. Rate needs to hold above 1.4700 area to keep bulls happy. BOE King suggests quantitative easing is on the way; traders see this as bearish. Traders note stops and active selling as the rate drops back to 1.4480 area suggesting that is becoming a pivot area. Tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Rate trading on technical’s now. Spillover from EURO likely but modest.

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


Forex Analysis written by Jason Alan Jankovsky, featured by