Resistance 3: 1.4050

Resistance 2: 1.4000

Resistance 1: 1.3920

Latest New York: 1.3885

Support 1: 1.3650/60

Support 2: 1.3600/10

Support 3: 1.3500/10


Rate two-way and recovers after a marginal new low into support overnight. 23 year lows in sight but the rate is attracting bids. Reversal off weekly lows a positive technical but the volume needs to come up and I think the shorts have yet to bail as a group. Likely an upside rally is still in the works but the rate needs to rebound hard to wash-out the shorts again. After yesterday€™s action I think both sides will take a break. 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 long-term support at 1.3500 area now in play. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Short squeeze back on the board I think.

Data due Thursday: All times EASTERN (-4 GMT)

5:30am GBP Consumer Inflation Expectations

6:00am GBP CB Leading Index m/m

2:30pm GBP MPC Member Barker Speaks

Forex Analysis written by Jason Alan Jankovsky, featured by