Resistance 3: 1.4380

Resistance 2: 1.4300/10

Resistance 1: 1.4250

Latest New York: 1.4069

Support 1: 1.4020/30

Support 2: 1.3950

Support 3: 1.3900


Rate rallies overnight then falls back to test support in NY again, low prints at 1.3982 above major bids said to be around 1.3950 area; shorts are gaining confidence for a break under 1.4000. Rally to clear close in stops above 1.4300 and a close over the handle suggest more upside and a short-squeeze; bounce off the lows back to 1.4080/90 area suggests bids are increasing. Two-way action between existing S/R the past 72 hours likely to continue. Stops likely building on both sides increasing the chance for whipsaw. Traders report stops in-range adding for two-way action. Long-term 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 with initial support now at 1.3900 in play. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom.

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

4th-6th GBP Halifax HPI m/m

4:30am GBP Services PMI

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

Forex Analysis written by Jason Alan Jankovsky, featured by