Rate two-way again overnight, opens New York lower and holds into next level of support around the 1.4320/30 area. Technical trade the rule to start the week with cross-spreaders on the sell side of GBP overnight. Rate needs to hold above 1.4700 area to keep bulls happy.

BOE King suggests quantitative easing is on the way; traders see this as bearish. Traders note stops and active selling as the rate drops back to 1.4480 area suggesting that is becoming a pivot area. Tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break.

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. 

GBP/USD Daily

Resistance 3: 1.4700/10
Resistance 2: 1.4650
Resistance 1: 1.4580
Latest New York: 1.4369
Support 1: 1.4320
Support 2: 1.4250/60
Support 3: 1.4200

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

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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