Cross-spreaders on the sell side of the sterling pairs kept the rate under pressure overnight; rate gives back gains against USD in thin two-way action. Stops noted on the move back through the 1.5800 area on the way higher with offers mixed in; resistance at 1.6000 likely to cap near-term. UK PPI data was weaker but not as bad as expected; likely more bad news also due this week which will pressure calls for another BOE rate cut next month.

Traders note unwinding of Yen cross-spreads driving a lot of trade after the open. EURO/GBP reaches a record high encouraging a round of profit taking soon I think.

Traders note liquidity is only moderate and still on the lower side. Aggressive traders can look to buy the next dip. Expect more whippy action. Two-way action likely to continue.

GBP/USD Daily

Resistance 3: 1.6320/30
Resistance 2: 1.6250
Resistance 1: 1.6100/10
Latest New York: 1.5578
Support 1: 1.5550
Support 2: 1.5520/30
Support 3: 1.5420

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