Rate extends briefly into the 1.4400 handle and rallies out as shorts cover; stops over the 1.4620 area are large lifting the rate to new highs. Holding firm into the close more upside is likely overnight. Stops said to be building above the 1.4720 area after rate clears close-in stops.

Tests of the psychological 1.5000 area now complete with the pullback likely about over. Rate likely to find buyers on any dip to the 1.4500 area as this was the breakout area. Rate is still holding the 100 day MA nicely and aggressive traders can look to buy dips.

Traders note support is likely firm above the 1.4650 area now; the shorts have lost control of the market above the 1.4440 area now; traders report stops in-range adding for two-way action. Test of further lows likely to encourage a round of short-covering. 

GBP/USD Daily

Resistance 3: 1.4820
Resistance 2: 1.4780
Resistance 1: 1.4720/30
Latest New York: 1.4662
Support 1: 1.4500
Support 2: 1.4440/50
Support 3: 1.4400

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

4:30am GBP Claimant Count Change
4:30am GBP MPC Meeting Minutes
4:30am GBP Average Earnings Index 3m/y
4:30am GBP Public Sector Net Borrowing
4:30am GBP Prelim M4 Money Supply m/m
4:30am GBP Unemployment Rate
7:30am GBP Annual Budget Release 

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 forexpros.com