Resistance 3: 1.5040/50

Resistance 2: 1.5000

Resistance 1: 1.4950

Latest New York: 1.4726

Support 1: 1.4650

Support 2: 1.4580

Support 3: 1.4550

Comments

Rate pressures up to within striking distance of 1.5000 overnight; likely offers will be thick on any further advance. Aggressive traders can look to lighten up on longs above 1.4950 area. Stops noted above the 1.4880 area on the way up with traders noting stops under there on the way down. Rate makes lows after the fix but holds support to bounce back onto the 1.4700 handle. Traders note support is likely firm at the 1.4450 area as expected; offers ahead of 1.4700 easily absorbed keeping the bias to the upside. Close over 1.4900 argues for further gains but tech resistance is firm ahead of 1.5000. Overhead target of the 1.5000 area likely to trade but expect pressure. Traders feel the 23-year lows will likely remain secure. The shorts may have lost control of the market above the 1.4440 area now and if that is the case a test of the 1.5000 area is almost a done-deal. Traders report stops in-range adding for two-way action.

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

4:30am GBP Manufacturing Production m/m

4:30am GBP Industrial Production m/m

7:01pm GBP Nationwide Consumer Confidence

7:01pm GBP NIESR GDP Estimate

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