After all of today's action the rate ends about where it started this morning after making highs later in the day. Rate falls to a new low overnight but volumes are thin due to the holiday; likely an exhaustion dip and the rate will recover soon.

Hook Reversal on the day, look for a bottom the next 48 hours. OK to stand aside but I want to wait just a bit before buying. EURO holding firmer despite a lower open. So far suggesting GBP is overextended. Rumors of a Lehman Brother's bailout from a Korean source may be blowing over. Close above the 1.8580 area argues for further gains; aggressive traders can buy the close but again I would wait just a bit. Stop-driven break is likely a head fake in my view.

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:  1.8720
Resistance 2:  1.8680
Resistance 1:  1.8620
Latest New York: 1.8515
Support 1:  1.8400/10
Support 2:  1.8350
Support 3:  1.8320

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

4:30am GBP BBA Mortgage Approvals

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