Rate rallies off technical support on G-20 news; potential short-squeeze with more likely coming. Cross spreaders continue to hold interest near-term; profit-taking likely to result in a squeeze on the further strength. Rate rejecting trade inside previous wick is a sign of bid pressure taking the lows; likely some spillover from EURO.

Thin conditions continue to exacerbate moves. Some stops noted on the break back over the 1.4850 area and the rate continues two-way on the move. Technical trade overnight as traders decide near-term action with little to go on but the charts. Resistance now at the 1.5000 area likely to cap near-term. BOE rate cut next month increasingly likely but that is likely completely factored in at this point.

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 needed to find a bottom and we saw some of that last week near the lows.

GBP/USD Daily
Resistance 3: 1.5150
Resistance 2: 1.5080
Resistance 1: 1.4990/1.5000
Latest New York: 1.4918
Support 1: 1.4650
Support 2: 1.4580
Support 3: 1.4480/1/4500

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