Rate two-way and violent, likely stops under 1.4600 area cleared with bids around 1.4550 taking the other side. Lows late in the day argue that the toolbox signal valid; aggressive traders could lighten up on longs near-term. Traders report large names on the dip and the rate is likely to follow EURO higher if EURO can rally.

Overhead resistance now approaching the 1.5000 area with some tech resistance around 1.4880. Support likely on the dip to 14440/50 area. Traders report stops cleared over the 1.4710/30 area but expect another try from early shorts. The door is open to a rally back to the 1.5000 area. Some in-range stops driving some trade into the lows but traders feel the lows likely remain secure.

The volume needs to come up and I think the shorts have yet to bail as a group; that may be starting in earnest now. Traders report stops in-range adding for two-way action. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Next upside target is 1.4800 area, downside is near support at 1.4450 area.

GBP/USD Daily

• Resistance 3: 1.4880
• Resistance 2: 1.4820/30
• Resistance 1: 1.4780
• Latest New York: 1.4540
• Support 1: 1.4450
• Support 2: 1.4280
• Support 3: 1.4050

Data due Thursday: All times EASTERN (-4 GMT)

• 26th-31st GBP Nationwide HPI m/m
• 5:30am GBP Retail Sales m/m
• 5:30am GBP Revised Business Investment q/q

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