In early Asian session there was rumor of impending resignation of Japanese Prime Minister Yukio Hatoyama. Such rumour caused a slight whiff of panic in the JPY crosses which become a driving force in market momentum. GBP/USD which normally is illiquid during morning Asian session showed some volatility and moved within 105 pips range.
With GBP/USD opened at Tokyo session above the daily Pivot Point and one hour later had penetrated yesterday’s high, there was rumour of a decent sized stops above 1.4750. By Frankfurt open the pair almost touched 1.4750 before a sell-off. A second attempt for 1.4750 was made at London open and the pair reached 1.4768 before a floodgate of selling that carried the pair to support level at 61.8% during late London session. Support is also given by the mid-point of daily pivot and support S1, and round number 1.4550 .
Cable by London opening session has touched previous week swing high and low fibo extension of 138.2 (1.4743) and I expected the pair to trade above this level today with immediate resistance at 1.4768 (yesterday high) and the next level of resistance at 1.4800.
