Upside finds stops, volatility decreases a bit as today as market extends range in good two-way trade. Traders note stops and unwinding of cross-spreads supporting the rate. Follow-on selling finds bids at prior low. Bounce off the lows early in the week leaves a healthy bid wick suggesting some upside coming. Traders note liquidity is still thin.

Rate at new resistance level but ranges appears wider. Traders note quality bids on the dip suggesting a bottom is in finally but expect volatility.

Aggressive traders can buy anytime on weakness but expect more whippy action. Two-way action likely to continue. Confirmed sovereign interest on the dip as semi-officials seen on dips in both EURO and GBP recently; lately middle-east names. Traders report cross-spreading for Sterling/JPY lifting the rate.  

GBP/USD Daily

Resistance 3:  1.6650
Resistance 2:  1.6580
Resistance 1:  1.6500
Latest New York: 1.6400
Support 1:  1.5400
Support 2:  1.5250
Support 3:  ?

Data due Thursday: All times EASTERN (-4 GMT)

3:00am GBP Nationwide HPI m/m
8:01pm GBP GfK 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