Rate tests support in NY at 1.3950 area; shorts are gaining confidence for a break under 1.4000.  Rally to clear close in stops above 1.4300 and a close over the handle suggest more upside and a short-squeeze; today’s break to lows likely put’s that scenario on hold.

Two-way action between existing S/R the past 72 hours likely to continue. Stops likely building on both sides increasing the chance for whipsaw. Traders report stops in-range adding for two-way action.

Long-term 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 with initial support now at 1.3900 in play.

Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom.   

GBP/USD Daily

Resistance 3:  1.4380
Resistance 2:  1.4300/10
Resistance 1:  1.4250
Latest New York: 1.4052
Support 1:  1.4020/30
Support 2:  1.3950

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

4:30am GBP Construction PMI
7:01pm GBP Nationwide Consumer Confidence

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