Rate little changed but sellers in control to start; follows EURO higher, stops above the market cleared Friday and volumes dried up. Bids likely under the 1.9800 area to support near-term but sell signal is active; traders report a lot of stops building under the 1.9790 area.

Traders expect GBP to track EURO through this week. Traders now expect a top to form as the rate had thinner volume on the rally last week into the reported option defense last week. Continue to expect a lot of cross-trading.  

USD/GBP Daily

Resistance 3:  1.9980
Resistance 2:  1.9950/60
Resistance 1:  1.9920/30
Latest New York: 1.9871
Support 1:  1.9800/10
Support 2:  1.9750/60
Support 3:  1.9700/10

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

4:30am GBP CPI y/y
4:30am GBP Core CPI y/y
4:30am GBP RPI y/y

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