Rate reverses overnight but not as much as other pairs; cross-spreaders on the offer. Traders note stops and active buying above the 1.4320 area and the rate recovers the 1.4400 handle into New York. Any correction a buying opportunity now as the rate begins to squeeze shorts. 23 year lows are very likely to hold on any break.

Light stops seen on the move under 1.4380 with likely active selling dropping into lows overnight but the rate recovers in New York suggesting the bulls are in control.

Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Rate trading on technical's now. Spillover from EURO likely but modest. A short-covering rally is increasingly likely now.

GBP/USD Daily

Resistance 3: 1.4650
Resistance 2: 1.4620
Resistance 1: 1.4580
Latest New York: 1.4460
Support 1: 1.4320
Support 2: 1.4250/60
Support 3: 1.4200

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

5th-6th GBP Halifax HPI m/m
Tentative GBP MPC Rate Statement
7:00am GBP Official Bank Rate

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