Rate holds gains and makes new high overnight; stops seen above weekly highs around the 1.4050 area. Tests support on pullback and holds for now. Lows likely remain secure. Reversal off weekly lows a positive technical but the volume needs to come up and I think the shorts have yet to bail as a group.

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 long-term support at 1.3500 area now in play.

Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Short squeeze back on the board I think.

GBP/USD Daily

• Resistance 3: 1.4350
• Resistance 2: 1.4320
• Resistance 1: 1.4250
• Latest New York: 1.4053
• Support 1: 1.3860
• Support 2: 1.3780
• Support 3: 1.3720

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

• 5:30am GBP DCLG HPI y/y
• 4:10pm GBP BOE Gov King Speaks 

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