GBP/USD Daily 

Resistance 3:  1.9820
Resistance 2:  1.9780
Resistance 1:  1.9740/50
Latest New York: 1.9730
Support 1:  1.9650/60
Support 2:  1.9620/30
Support 3:  1.9600

Comments

Rate stays two-way all day, closes above the 1.9700 handle, still in the “sell zone” with existing S/R still active. Look for a test of the 1.9600 area within 24 hours; likely after the news Wednesday.  Close under the 1.9700 handle again needed to wash out the longs. Bounce back to trade at or near the 1.9720 area into the close suggests a rally is coming. Upside remains limited in my view but ranges can be wide as evidenced by the past few days of trade. Sell rallies if not short; buying dips dangerous.

Closes over the MA’s likely not to last so a rally over the 100 bar MA a good sell in my view. Still need down bars with higher volume to confirm; not getting that today.

Some pressure from EURO remains. Cross-spreading for Yen, Swissy and EURO evident; look for additional sell-off to end the week.

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

4:30am GBP Services PMI 51.7
7:01pm GBP Consumer Confidence Index 74

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