Two-way technical trade holds pair lower until pressure from EURO lifts rate into resistance. Lows holding at 1.4900/10 area. Bounce off early weakness suggests buyers are willing on dips; aggressive traders can buy the next dip in my view, look for prices around the 1.4780 area on a break.

Rally in EURO holds under pressure from cross spreaders; stops finally enough to hold above 1.5200 area. Cross-spreaders likely keeping pressure on as GBP/EURO cross holds near lifetime high. Although close is above the 1.4850 area the failure at highs is still a caution.

Traders note solid two-way action. Sellers hold control above 1.5100 area so far; profit-taking likely to result in a squeeze on the further strength. Technical trade overnight again. Traders note liquidity is only moderate and still on the lower side.

GBP/USD Daily
Resistance 3: 1.5500/10
Resistance 2: 1.5450
Resistance 1: 1.5380
Latest New York: 1.5279
Support 1: 1.4850
Support 2: 1.4740
Support 3: 1.4680

Data due Tuesday: All times EASTERN (-5 GMT)
4:30am GBP CPI y/y
4:30am GBP Core CPI y/y
4:30am GBP RPI y/y
Tentative GBP BOE Inflation Letter

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