Late pullback on technical factors; some spillover from GBP. Rate two-way and dips are being bought, follows GBP higher but lots of stops and active buying seen. Light pressure intraday easily absorbed despite fear of pullback. Weekly high below major resistance and rate is inside range so far today suggests a point of indecision. Likely support will hold at the 1.4330 area. Some upside drawn from Cable no doubt.

Rate two-way overnight, remains near unchanged to open New York; two-way action continues. Some selling pressure seen but rate is likely to press for highs on more bad news.

Resistance is cleared the other side of the 1.8500 handle so expect a pullback to be bought hard. Aggressive traders can buy the next dip but also look to lighten longs into the 1.8700 area if it comes. Equities pullback vote of "no confidence" so far on the bailout. Possible sovereign interest on the rally as semi-officials seen on dips in both EURO and GBP recently. Some stops triggered along with active buying.

The USD is on the offensive this afternoon although volumes are light and trade seems driven by rhetoric and technical factors. Traders remain nervous over the delay in passing the bailout bill and adding insult to injury today's testimony by Paulson and Bernanke on Capitol Hill has been largely a repeat of yesterday's discussion suggesting that legislator's are dragging their feet or just plain need to have something told to them twice. Equities have been two-sided as have been traditional hedges such as gold and bonds. Traders note that if much more "talking" instead of "acting" were to continue then investor confidence may begin to turn south.