Rate bounces off support at the 1.9470 area; leaves a long bid wick suggesting the downside is a head-fake. Comments from BOE reverse the rate as traders panic on the sell-side. If long, need to be patient and wait for the panic to subside and the rally to resume.

Rate finds stops layered under the 1.9600 area all the way down into active selling under the 1.9500 handle; if this selling is absorbed then the rate will recover fairly quickly I think. Rumors of UK inflation concerns keeps the rate buoyed above 2008 lows. Likely cross-spreaders on the move. A bounce is likely and aggressive traders can ADD if not already long.

Spillover weakness from EURO still likely as would be strength. Continue to expect a lot of cross-trading; the cross-spreaders are having a field day with the Sterling crosses and I think that will continue through this week and into the next. 

GBP/USD Daily

Resistance 3:  1.9700
Resistance 2:  1.9650
Resistance 1:  1.9600/10
Latest New York: 1.9568
Support 1:  1.9500/10
Support 2:  1.9450/60
Support 3:  1.9420

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

4:30am GBP MPC Meeting Minutes
6:00am GBP CBI Industrial Trends Orders
2:30pm GBP BOE Governor 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