Chart: WorldWideMarkets Alpha Trader
Cable showed resilience in early Europe with a 112 pip rebound from the support level of 1.4910 to 1.5012 on profit-taking of short positions while the US dollar eased lower on a similar profit-taking correction.
Yesterday, GBPUSD fell from 1.5070 to 1.4893 after a weak UK industrial & manufacturing data which dispelled sentiment of a possible UK rate hike. BOE MPC member Weale said that the recent weakness in oil prices may allow the BOE to keep their rates lower for longer.
The BOE will release its quarterly bulletin today with Governor Carney scheduled to speak at 12:45pm GMT.
EURGBP rebounded as well to 0.7095 from 0.7035 in the European morning session as the euro gained on a similar short-covering move against the dollar.
The UK January Trade Balance narrowed marginally to 8.4B from 9.9B which pushed cable by 24 points to 1.4990 from 1.4966 at 9:30 GMT.
Support: 1.4910, 1.4900, 1.4893,1.4815
Resistance: 1.5010, 1.5040, 1.5080, 1.5095
Fibonacci Fan retracements: 1.5040 (38.2%), 1.5080 (50%), 1.5120 (61.8%)