Rate two-way, holds support from yesterday suggesting the bottom may be forming around the 1.3200 area. 50 bar MA failed to offer solid support and selling may have been late-follow-on and will be squeezed out.

Semi-official and sovereign bids seen at the 1.3200 area. Cross-liquidation continues. Sovereign offers seen into the highs last week traders say but those may be covering into the dip this week. Overnight semi-official bids reported by some desks. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling.

Rate firms after finding support at the 1.4490 area overnight; lower into support level before a "dead cat bounce". Minor signs of the bottom firmly in after holding the 1.4500 handle during the day.

Cross-spreaders continue to sell GBP across the board. 2008 lows likely target but sellers are drying up in my view as volumes have been light on this break.

Spillover from EURO likely but action still technical. Bears took a stand above the 1.5250 area last week; likely they will look to cover into significant lows—look for two-way action into this bottom.

Rate two-way but falls through more stops to make a bottom under monthly support; 50 bar MA failed to offer solid support. Cross-liquidation continues. Rally likely bids absorb offers under the 1.3300 area.

Sovereign offers seen into the highs last week traders say but those may be covering into the dip this week. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling. Technical levels around the 1.3300 area are firm; look for a solid bounce from here.

Rate continued lower into next support level before a "dead cat bounce". No sign yet of the bottom firmly in after failing to hold the 1.4500 handle during the day. Cross-spreaders continue to sell GBP across the board.

2008 lows likely target but sellers are drying up in my view as volumes have been light on this break. Spillover from EURO likely but action still technical. Bears took a stand above the 1.5250 area last week; likely they will look to cover into significant lows-look for two-way action into this bottom.