Rate rallies all day, 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. 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 this morning; some stops triggered along with active buying. In my view, the GBP has weathered the storm fairly well and it suggests no serious down move near-term. Traders note stops mixed with offers above the market also.

Major support has held for two weeks now, any weakness likely to be bought hard. Profit-taking bids continue as well. Close above the 1.8500 area for the week likely argues for another leg higher to end the month.  

GBP/USD Daily

Resistance 3:  1.8680
Resistance 2:  1.8620/30
Resistance 1:  1.8590/1.8600
Latest New York: 1.8612
Support 1:  1.8250/60
Support 2:  1.8200/10
Support 3:  1.8180

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

4:30am GBP BBA Mortgage Approvals

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