Rate falls back to next support level at 1.4130 area but bounces on large names on the bid. Traders note technical action continues. Rate needs to return to the 1.4500 area fairly fast and a close above 1.4700 area to keep bulls happy near term.

Traders note stops and active selling as the rate drops back under 1.4320 area Monday again; tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break.

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. 

GBP/USD Daily

Resistance 3: 1.4700/10
Resistance 2: 1.4650
Resistance 1: 1.4600/10
Latest New York: 1.4259
Support 1: 1.4250/60
Support 2: 1.412030
Support 3: 1.4000

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

4:30am GBP MPC Meeting Minutes
6:00am GBP CBI Industrial Order Expectations

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