Rate forced lower into early Asia overnight but reverses into Europe.

Analysts suggest 100 BP rate cut coming on Thursday; probably already fully factored in. Good bids reported but supply seen from semi-official names. Stops in range helps to pressure but support has failed at 1.5050 area. Traders note solid two-way action with stops cleared across several levels.

Sellers hold control above 1.5100 area so far; OK to buy if flat on a dip. Profit-taking likely to result in a squeeze on the further strength. Technical trade overnight again. BOE rate cut 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.

GBP/USD Daily

Resistance 3:  1.5680
Resistance 2:  1.5620
Resistance 1:  1.5550
Latest New York: 1.4898
Support 1:  1.4770
Support 2:  1.4700/10
Support 3:  1.4650

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

4:30am GBP Services PMI
5:30am GBP BRC Shop Price Index y/y

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