The US has pulled ahead in the race on rates and the pound is suffering. GBP/USD is holding up at the 1.5750 level with a fairly big fib level just under at 1.5720. There has been a lot of support and resistance at this level going back to 2008 and while I wouldn’t necessarily use it to trade from it is an explanation why the price may hold up here for a while.

GBP/USD Weekly chart 13 11 2014

GBP/USD Weekly chart 13 11 2014

If we break below the fib we enter a spot that many have been looking at (1.5700) but that won’t mean it’s the end of the falls. There will be scope to see it drop down to the 1.52/1.54 area which has also held historical S&R levels. Around the 1.51 area we have two support lines from 2009 and 2010.

Intraday, the resistance points are pretty clear, 1.5760, 1.5780, 1.5800/05, 1.5820, 1.5840, 1.5880. While mild close by they will increase in strength the higher we go, dependant on the reason. A break of 1.5700 might bring a bigger move but look for a confirmation of the level holding on a re-test as we may just have a little stop flush to somewhere like 1.5680 before bouncing.

Another pair to keep an eye on is GBP/CHF as there may be some better value for an SNB pop than in EUR/CHF. Although you don’t have the SNB at your back at a particular level, any further pound and Swiss negativity may give a good opportunity for a bounce that may be bigger than in GBP/USD or EUR/CHF.

GBP/CHF Weekly chart 13 11 2014

GBP/CHF Weekly chart 13 11 2014

The 1.5000/1.4980 level is one I’m going to be looking at as well as down to the support line at 1.4900.