New low late trade today; pressured lower from stops and general technical selling. Light UK data no help overnight; traders note middle-eastern names on the bid as the rate drops.

Today's action again very two-way; stops under the lows drive trade also. Drop under psychological support at 1.7000 challenged again. Rate at buy zone now but range appears wider. Drop under the 1.7200 handle finds light stops. Monthly lows give way as sentiment won't rally.

Traders note quality bids on the dip suggesting a bottom is in here somewhere.  Aggressive traders can buy under 1.7000 area but expect more whippy action. Follow-on selling likely from technical's but spillover strength from EURO likely to be better to end the week.

Look for a recovery back to the 1.8000 handle near term; two-way action likely to continue. Confirmed sovereign interest on the dip last night as semi-officials seen on dips in both EURO and GBP recently. Traders report cross-spreading for Sterling crosses likely driving the rate near-term.

GBP/USD Daily

Resistance 3:  1.7380
Resistance 2:  1.7320
Resistance 1:  1.7250
Latest New York: 1.6707
Support 1:  1.6700/10
Support 2:  1.6650/60
Support 3:  1.6600

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

4:30am GBP MPC Meeting Minutes

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