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GBP/USD Daily - Evening Session - GMT

Published 11/06/2008, 07:00 PM
Updated 05/14/2017, 06:45 AM

Rates finds support around potential rising wedge trend line and rallies past opening range; Yen crosses provide early pressure. BOE rate cut pressures GBP also on follow-through selling but is met with sovereign bids traders say. Sellers above likely older shorts adding to positions. Drop in price likely due to players adding to positions on failure to hold gains; light stops reported on overnight rally suggesting shorts are covering. Traders note liquidity is better than last week but still low. Aggressive traders can look to buy the next dip. Expect more whippy action. Two-way action likely to continue. Confirmed sovereign interest on the dip overnight in both EURO and GBP; lately Asian names. Look for a test of the 1.6000 handle today or Monday.

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

4:30am GBP PPI Input m/m
4:30am GBP PPI Output m/m
7:01pm GBP BRC Retail Sales Monitor y/y
7:01pm GBP RICS House Price Balance


Resistance 3:  1.6320/30
Resistance 2:  1.6250
Resistance 1:  1.6100/10
Latest New York: 1.5785
Support 1:  1.5520/30
Support 2:  1.5500
Support 3:  1.5450

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