Rate falls back in sympathy with EURO; makes lows late in the day while other pairs hold firm suggesting cross-spreading and whipsaw. Rate is under pressure from stops under 1.9000 initially despite higher CPI. Volumes lighter into the lows. Technical buying seen from some desks, buying seen from semi-official names last week and likely more this week.

Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp 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 Weekly

Resistance 3:  1.9220
Resistance 2:  1.9180
Resistance 1:  1.9150
Latest New York: 1.8966
Support 1:  1.8960
Support 2:  1.8920
Support 3:  1.8900

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

4:30am GBP Claimant Count Change
4:30am GBP Average Earnings Index y/y
4:30am GBP Unemployment Rate
5:30am GBP BOE Inflation Report

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