Rate softens during US trade slightly, US data slightly positive for the USD. Stops the main driver over the 1.9970/80 area with more over the 2.00 handle. Traders expect GBP to track EURO on a break. UK housing prices lower than expected had no effect; traders now expect a top to form as the rate had thinner volume on the rally into the reported option defense.

Rate fails at high prints near previous resistance so a correction is still developing. Spillover weakness/strength from EURO still likely all week this week.  Continue to expect a lot of cross-trading. US data today may create some whipsaw again.  

GBP/USD Daily

Resistance 3:  2.0080
Resistance 2:  2.0050
Resistance 1:  2.0000/10
Latest New York: 1.9941
Support 1:  1.9880
Support 2:  1.9820
Support 3:  1.9780

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

4:30am GBP Construction PMI
4:30am GBP Housing Equity Withdrawal q/q

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