Resistance 3: $1.6230
Resistance 2: $1.6180
Resistance 1: $1.5980
Current price: $1.5862
Support 1: $1.5800
Support 2: $1.5610
Support 3: $1.5400
Comments: The pound declined for a second day against the dollar before expected
rate reduction by the Bank of England to 4.00% from 4.50%. Most economists looking for a 50 b.p rate cut today but some say 100 b.p is possible, and that should keep the pound
defensive.
The decision will be announced at 1200GMT today in London.
Closest support comes at $1.5800. A decisive break below $1.5610 (50%
retracement of rally from $1.5280) puts October 24, 27 low at
$1.5260/80 back in focus. Interim support level is $1.5410/00. Above
yesterday high $1.6180 resistance comes at 14DMA, currently at $1.6230
and Monday's high $1.6400. 21DMA comes today at $1.6470.