Rate rallies back in lighter volume, stopped out of third add. Potential for large range overnight unexpected and likely more head-fake. OK to add again if rate fails from the highs by the end of the day.

Stops at 2.0050 area but offers are there too traders say. Traders report interest on the sell side from large names and Asian Sovereigns but they were on the bid from the lows overnight this time. Rate tracking EURO as expected but unable to break out either way yet.

Hold shorts; bids under the 1.9950 area likely cleared, stops likely now after upper stops cleared. Offers from large names traders say; if 1.9950 fails on the close today it could be a big drop. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading.  

GBP/USD Daily

Resistance 3:  2.0080
Resistance 2:  2.0050
Resistance 1:  2.0020/30
Latest New York: 1.9973
Support 1:  1.9880
Support 2:  1.9840/50
Support 3:  1.9820

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

4:30am GBP Retail Sales m/m
1:00pm GBP MPC Member Bean Speaks

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