GBPUSD

The GBP has been bid today as the UK PPI came up much stronger than expected at +2.4% MoM.  The bottom line on a flag formation on the daily chart held earlier today.  That - coupled with the strong fundamental news - was enough to send the GBPUSD moving higher. 

EURUSD:
Stayed above the 1.5449 level and now testing resistance at 1.5484

NZDUSD:
Held the 0.7665 level and traded marginally higher

GBPUSD:
Held the trendline support at 1.9467 and moved higher.

Trendline resistance comes in at 1.9469.  A break will target lower levels.

The UK currency pairs remain under pressure this morning as weaker data out of the UK, has people thinking that there may be a chance of a cut, or at least a split vote tomorrow. 

The GBPUSD bounced off the key support of 1.9590 once again.  This level has been focused on for some time now as there is chatter about key sell stops below it. 

A key GBPUSD level being looked at, while still about 100 PIPS away, is the 1.9590 level.  This level has not been touched since mid February but it has been closely watched as a key support for several weeks now with speculation of large stops being there. 

1.9764 is the midpont of the last move up.  The market respected that level on the downside on the first attempt.  The market is now more balanced.

The GBPUSD is breaking lower after moving below the 100 and 200 hour moving average after the 8;30 numbers.  The level for those averages come in at 1.9820.  A move above that level will be needed to negate the intraday bearish sentiment today. 

The 1.9784 did not stop the move.  The 50% retracement of the move down from April 28th comes in at 1.9792 and that is not stopping it as well.  There seems to be some shorts in GBP pairs that are causing some month end squaring.

1.9784 should provide some resistance. The EURGBP is also getting sold off (GBP higher). GBPJPY has extended the upside as per previous post as the stock market improves.