Rate falls through stops into support around the 1.4100 handle overnight; traders report more stops waiting under 1.4100 with bids around 1.4050 for the day. Rate recovers back to the 1.4200 handle late as late shorts fail to get a foothold. A close back under the 1.4250 area argues for more losses but support is solid around 1.4100 so aggressive traders can buy dips.

Traders report large names on the dips last week but they may have been whipsawed out to start this week. Overhead resistance now drops to 1.4380 to 1.4440 area; overhead target of the 1.5000 area likely to be on hold with a test of the lows first possibly creating a range.

Traders feel the 23-year lows will likely remain secure. The shorts have taken control of the market above the 1.4440 area for now and if a range is forming a test under the 1.3900 handle is likely; traders report stops in-range adding for two-way action. 

GBP/USD Daily

• Resistance 3: 1.4440/50
• Resistance 2: 1.4380
• Resistance 1: 1.4300
• Latest New York: 1.4248
• Support 1: 1.4100/10
• Support 2: 1.4050
• Support 3: 1.4020

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

• 4:30am GBP Index of Services 3m/3m
• 9:00am GBP MPC Member Tucker Speaks

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more
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