Rate goes two-way overnight, follows EURO lower. Good buying seen from large names at 1.9550 area the past 24 hours. Fails to hold early gains on lighter volumes. Rate has likely flushed out weak early longs and shorts will likely take gains soon leaving the rate vulnerable to a rally.

Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading.   

GBP/USD Daily

Resistance 3:  1.9700

Resistance 2:  1.9680

Resistance 1:  1.9630

Latest New York: 1.9547

Support 1:  1.9520

Support 2:  1.9480

Support 3:  1.9450

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

Tentative GBP Halifax HPI m/m

Tentative GBP MPC Rate Statement

7:00am GBP Official Bank Rate