Rate continues rally, cross spreading also noted. Late sell-off due to equities rally. Possible sovereign interest under the 1.8150 area this morning; some stops above the 1.8150 area.

In my view, the GBP has weathered the storm fairly well and it suggests no additional down move near-term. Cross spreaders seen active on the sell side but volumes lighter. OK to buy the rate the next 24 hours and I would look for a dip under the 1.7830 area for the buy but that looks unlikely after the rally has extended late week.

Traders note stops mixed with offers above the market also. Major support has held last Friday, any weakness likely to be bought hard. Profit-taking bids continue as well.

Hook reversal from the toolbox still valid. Short-covering rally may be over due to sharpness of the move. Close back above the 1.8100 area likely turns the rate positive. 

GBP/USD Daily

Resistance 3:  1.8350
Resistance 2:  1.8300/10
Resistance 1:  1.8270/80
Latest New York: 1.8131
Support 1:  1.8080
Support 2:  1.8020/30
Support 3:  1.7980

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

NONE

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