Rate forced lower into early Asia overnight but reverses into Europe. Stops triggered on the break but support holds at 1.4650 area. Rate sideways to firmer after London fix. Analysts suggest 100 BP rate cut coming on Thursday; probably already fully factored in.

Good bids reported but supply seen from semi-official names. Traders note solid two-way action with stops cleared across several levels in both directions. 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: 1.4760
Support 1: 1.4650/60
Support 2: 1.4600
Support 3: 1.4520/30

Data due Thursday: All times EASTERN (-5 GMT)
Tentative GBP MPC Rate Statement
7:00am GBP Official Bank Rate
10:30am GBP CB Leading Index m/m

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