Rate firms again overnight; upside extends to new weekly highs. Overhead resistance now at 1.4650 with the 1.4700 handle likely to trade the next 24 hours. Traders report stops likely over the 1.4710/30 area.

The door is open to a rally back to the 1.5000 area. Some in-range stops driving some trade over the 1.4500 area. Lows likely remain secure. The volume needs to come up and I think the shorts have yet to bail as a group; that may be starting in earnest now.

Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. 

Next upside target is 1.4800 area, downside is near support at 1.4250 area.

GBP/USD Daily

Resistance 3:  1.4730
Resistance 2:  1.4700/10
Resistance 1:  1.4650
Latest New York: 1.4620
Support 1:  1.3860
Support 2:  1.3780
Support 3:  1.3720

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

5:30am GBP CPI y/y
5:30am GBP BBA Mortgage Approvals
5:30am GBP Core CPI y/y
5:30am GBP RPI y/y
5:45am GBP Inflation Report Hearings
11:30am GBP BOE Gov King Speaks
2:30pm GBP MPC Member Blanchflower Speaks

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more
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