Rate rallies and takes EURO with it; traders note stops and active buying above the 1.4300 area. Any correction a buying opportunity now as the rate begins to squeeze shorts.

23 year lows are very likely to hold on any break. Possibly unwinding of GBP crosses pressuring the rate back to and above the 1.4300 handle near-term. Light stops seen on the move under 1.4200 with likely active selling dropping into lows overnight but the rate recovers New York suggesting the bulls are in control.

Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Rate trading on technical's now. Spillover from EURO likely but modest. A short-covering rally is increasingly likely now. Late sellers likely in or hurting.

GBP USD Daily

Resistance 3: 1.4620
Resistance 2: 1.4550
Resistance 1: 1.4480
Latest New York: 1.4458
Support 1: 1.4150
Support 2: 1.4080
Support 3: 1.4000/10

Data due Wednesday: All times EASTERN (-5 GMT)

4th-6th GBP Halifax HPI m/m
4:30am GBP Services PMI
5:30am GBP BRC Shop Price Index y/y

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