After all was said and done today, the GBP traded mostly sideways on light volumes. Dips were bought by large names traders say. Stops drive rate into the lows but bids and rumors of sovereign buys hold rate at the 1.9450/60 area on light volume to start New York.

Trading in sympathy with EURO continues and EURO strength likely to spillover eventually into cable. Stopped out of longs overnight; OK to look at the long side again as support may be forming at current levels; might want to wait 24 hours. Lots of potential for day traders the next 24-48 hours as the rate is likely to stay range bound ahead of US data later in the week.

Continue to expect a lot of sympathy trade with EURO; the cross-spreaders are having a field day with the Sterling crosses and I think the GBP may track EURO near-term. Expect continued whipsaw around US news this morning. Bernanke comments a total head-fake in my view.

GBP/USD Daily

Resistance 3:  1.9720
Resistance 2:  1.9680
Resistance 1:  1.9630/40
Latest New York: 1.9545
Support 1:  1.9520/30
Support 2:  1.9500
Support 3:  1.9480

Data due Thursday: All times EASTERN (-5 GMT)

Tentative GBP Halifax House Price Index m/m -1.1%
Tentative GBP MPC Rate Statement
7:00am GBP Official Bank Rate

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