Resistance 3: 1.4730

Resistance 2: 1.4700/10

Resistance 1: 1.4650

Latest New York: 1.4574

Support 1: 1.3860

Support 2: 1.3780

Support 3: 1.3720

Comments

Rate firms again overnight; upside extends to new weekly highs before correcting back to zone of bids under 1.4480 area. Overhead resistance now at 1.4650 with the 1.4700 handle likely to trade the next 24 hours. Traders report stops likely over the 1.4710/30 area. The door is open to a rally back to the 1.5000 area. Some in-range stops driving some trade into the 1.4500 area. Lows likely remain secure. The volume needs to come up and I think the shorts have yet to bail as a group; that may be starting in earnest now. Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Next upside target is 1.4800 area, downside is near support at 1.4250 area

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

5:30am GBP CPI y/y

5:30am GBP BBA Mortgage Approvals

5:30am GBP Core CPI y/y

5:30am GBP RPI y/y

5:45am GBP Inflation Report Hearings

11:30am GBP BOE Gov King Speaks

2:30pm GBP MPC Member Blanchflower Speaks

Forex Trading Analysis written by Jason Alan Jankovsky, featured by forexpros.com