GBP USD Technical Forex Analysis for Forex Traders
Rate is two-way and firmer due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone. Rally to highs during New York today likely some stops and short-squeeze.
Rate is likely to have a knee-jerk reaction to more rate cuts due later in the week but with a new 2008 low late in the month last month the probabilities are good that any rate cut is factored in. Rate sees upside stops cleared overnight putting the next level resistance around 1.5050/1.5100 in play.
Spillover from EURO not there today as spreaders unwind. Traders note solid two-way action. Sellers hold control above 1.5100 area so far but if unable to make a new low or test the low-expect a short-squeeze.
Resistance 3: 1.5100
Resistance 2: 1.5050
Resistance 1: 1.4990
Latest New York: 1.4960
Support 1: 1.4420/30
Support 2: 1.4350
Support 3: 1.4280
Data due Wednesday: All times EASTERN (-5 GMT)
5:30am GBP BRC Shop Price Index y/y
Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com