Rate remains two-way overnight, corrects lower in New York. Some selling pressure seen but rate is likely to press for highs on more bad news. Aggressive traders can buy the next dip but also look to lighten longs into the 1.8700 area if it comes. Equities rally but that will fail in my view.

Possible sovereign interest on the rally as semi-officials seen on dips in both EURO and GBP recently. Some stops triggered along with active buying. Traders note stops mixed with offers above the market also. Major support has held for two weeks now, any weakness likely to be bought hard.

Profit-taking bids continue as well. Close above the 1.8500 area for the week likely argues for another leg higher to end the month.  Rate is coiling suggesting a breakout coming soon.

GBP/USD Daily

Resistance 3:  1.8750
Resistance 2:  1.8700/10
Resistance 1:  1.8680
Latest New York: 1.8384
Support 1:  1.8300
Support 2:  1.8250/60
Support 3:  1.8200

Data due Friday: All times EASTERN (-4 GMT)

Tentative GBP Nationwide HPI 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