Rate falls hard as stops and aggressive selling drive the rate to a new 7.5 year low; cross-spreaders continue to sell GBP across the board but a short-squeeze is in progress. Overnight economic news seen as neutral to bearish; rate trading on technical's now.

Sell-signal from toolbox likely over after three-figure bounce from lows. Signs of the bottom may be showing up as "smart" buyers reported in GBP overnight and after the London fix.

Volumes increased on the move suggesting late shorts trying to make for a quick buck only to get cooked. Spillover from EURO likely but modest. Look for two-way action into this bottom. A short-covering rally is increasingly likely now. Late sellers likely in or hurting. 

GBP USD Daily
Resistance 3: 1.4180
Resistance 2: 1.4100
Resistance 1: 1.4020
Latest New York: 1.3975
Support 1: 1.3620
Support 2: ?
Support 3: ?

Data due Thursday: All times EASTERN (-5 GMT)
6:00am GBP CBI Industrial Order Expectations

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