The pair found support at 1.64732 during the day’s trading session, after a mild sell off from the strong bullish trend which was triggered by England Central Bank Governor Carney speech on Friday January 24, 2014. Intraday bias remains on the upside as market sentiments are beginning to re-ignite the current bullish run. A test of resistance 1.6666 is expected in the middle term picture as RSI, Stochastic, MACD and 55EMA are all signaling the short term fall from 1.6666 has ended and a bullish run is about to surface. A clear break of resistance 1.6666 could see further demand of the pair to 1.68000 psychological zones.
Furthermore, a published data of New Home Sales during U.S session on Monday shows weakness in the U.S economy after a disappointing figure was released. The Census Bureau reported earlier that sales of new, single-family houses in December came in at a seasonally adjusted annual rate of 414,000, missing market calls for a 475,000 reading and also below November’s revised figure of 445,000, which softened the dollar slightly.
However a key economic report to watch out for tomorrow is the Great Britain’s Prelim GDPq/q, this will determine whether strength or weakness will emanate from the Great Britain currency which could spur demand or supply. A surprise worsen data could see price break below 1.64732 support which might see price fall to 1.63700.