GBPUSD: Firm, but biding its time below 1.5730 ahead of Carney’s Treasury Select Committee testimony.

Cable was underpinned by the better German IFO today and is a little higher, in line with the Euro. Further consolidation may be likely today in the absence of any UK data today, with the market looking ahead towards tomorrows UK Q3 GDP reading. Mark Carney will be speaking today to the Treasury Select Committee today, and this may create some waves so will be worth watching.

Technically, the short term charts look mildly positive, but Sterling need to break above 1.5730(23.6% of 1.6182/1.5593) /1.5735 (minor double top) to give confidence that we have made a near term base. If that can be managed, then we could be in for a run towards minor resistance at around 1.5780 above which would head  to 1.5800 and  the next Fibo resistance at 1.5813 (38.2% 1.6182/1.5589).

The downside will now find some buyers here at 1.5700, below which would head back to the 1.5680 and the 1.5665. Further losses, which look a little unlikely at the time of writing, would see a decline back to the day’s lows at 1.5628. The 1.5625 area should now prove quite strong support and stops will be placed below here. If triggered at any time, we would see another run towards 1.5590/00, which again, should be pretty solid support, but if Cable does come under further pressure, look for a run, below 1.5590 towards 1.5550 and then to 1.5500 beneath which, there is not too much support to be seen below there until we approach 1.5400

For now, look for 1.5675/1.5750 to cover it.