Rate is two-way and firmer due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone. Rate is likely to have a knee-jerk reaction to more rate cuts due later in the week but with a new 2008 low late in the month last month the probabilities are good that any rate cut is factored in.

Rate sees upside stops cleared around the 1.4550 area in light trade but no follow-through as of yet. Toolbox signals a trend sell as active from late in December likely running out of steam around the 1.4400 area so if holding shorts be nimble.

Spillover from EURO not there today as spreaders unwind. Traders note solid two-way action. Sellers hold control above 1.5500 area so far but if unable to make a new low or test the low-expect a short-squeeze.

GBP/USD Daily
Resistance 3: 1.5800/10
Resistance 2: 1.5780
Resistance 1: 1.5710/20
Latest New York: 1.4490
Support 1: 1.4420/30
Support 2: 1.4350
Support 3: 1.4280

Data due Tuesday: All times EASTERN (-5 GMT)
2:00am GBP Nationwide HPI m/m
4:30am GBP Services PMI
7:01pm GBP Nationwide Consumer Confidence

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