The Cable is returning some of yesterday's gains after deflecting off the inflection point of our 1st tier downtrend and 2nd tier uptrend lines. Today's weakness comes in reaction to a weaker than expected number from the CBI regarding its expectation for industrial orders.

Investors didn't like too much of what the CBI's chancellor had to say yesterday concerning Britain's new budget and the health of the nation's economy. Though the GBP/USD managed to fight back above the psychological 1.45 level, the downtrend is still playing a lead role in today's action.

On an encouraging now, the Cable did find comfort in our 1st tier uptrend line, meaning we could witness some consolidation as the currency pair waits for the inflection point of our 1st tier uptrend and downtrend lines before making a more concrete directional decision. If the Cable manages to climb above our 2nd tier uptrend line, we could witness large near-term gains.

On the contrary, should the currency pair retrace beneath our 1st tier uptrend lines, the downtrend could pick up speed. As with the EUR/USD, the Cable's performance ultimately relies upon U. S. equities and results from the highly-anticipated stress tests coming May 4th.

As we anticipate consolidation around 1.30 in the EUR/USD, we wouldn't be surprised to see the same around 1.45 for the GBP/USD.

Fundamentally, we find resistances of 1.4579, 1.4612, 1.4677, 1.4730, and 1.4773.

To the downside, we see supports of 1.4532, 1.4480, 1.4438, 1.4391, and 1.4362.

The GBP/USD is currently exchanging at 1.4544.

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