GBP USD Technical Forex Analysis for Forex Traders

Volatility increases as rate is whipsawed by G7 news; follow-on selling finds bids at prior low. Bounce off the lows yesterday leaves a healthy bid wick suggesting some upside coming soon but today is an inside range so far. Traders note liquidity is still thin. Rate at new support level but ranges appears wider.

Traders note quality bids on the dip suggesting a bottom is in here somewhere but buyers have been stepping up for 1000 points now; many likely sidelined. Aggressive traders can buy anytime but expect more whippy action. Two-way action likely to continue.

Confirmed sovereign interest on the dip last night as semi-officials seen on dips in both EURO and GBP recently. Traders report cross-spreading for Sterling crosses likely driving the rate near-term.

GBP/USD Daily

Resistance 3: ?
Resistance 2: ?
Resistance 1: 1.6330
Latest New York: 1.5397
Support 1: 1.5260
Support 2: ?
Support 3: ?

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

7:00am GBP CBI Realized Sales

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