Rate is lower in response to rate cut, dips likely to be bought. Hook reversal from yesterday negated late. Stopped out of both potential buy points today; aggressive traders can look to the buy side again the next 24 hours as the rate is oversold in my view. Volumes lighter after the open.

Follow-on selling likely to attract short-covering on further weakness. Follow-on selling likely from technical’s and spillover from EURO likely to be lighter after EURO holds gains today. Look for a recovery back to the 1.8000 handle near term; two-way action likely to continue.

Possible sovereign interest on the dip as semi-officials seen on dips in both EURO and GBP recently. Some stops triggered along with active selling; traders note profit-taking bids. Traders report cross-spreading for Sterling crosses likely driving the rate near-term.

GBP/USD Daily

Resistance 3:  1.8180
Resistance 2:  1.8050
Resistance 1:  1.7880
Latest New York: 1.7309
Support 1:  1.7260
Support 2:  1.7220
Support 3:  1.7200

Data due Thursday: All times EASTERN (-4 GMT)

4:30am GBP Trade Balance
Tentative GBP MPC Rate Statement
7:00am GBP Official Bank Rate

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