Rate falls hard on dovish BOE report; highs ahead of there at 1.9038 suggesting bid interest was there but was panicked. Rate on two-year lows and is an excellent buy in my view.

Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news.

Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Stopped out on new lows, OK to look at the long side again tomorrow.

GBP/USD Weekly

Resistance 3:  1.8950
Resistance 2:  1.8900/10
Resistance 1:  1.8880
Latest New York: 1.8707
Support 1:  1.8630
Support 2:  1.8600
Support 3:  1.8580
 
Data due Thursday: All times EASTERN (-5 GMT)

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Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com