Overhead resistance around 1.5100 gives way to stops above lifting the rate to highs at 1.5250; failure and reversal suggests rate is set to rotate lower and test support around the 1.4820 area. Traders note stops above the 1.5100 handle we in size but new buying turned back.

Traders also note the same names seen in size on the bid the past few days. Resistance is expected to hold rate for a pullback and aggressive traders can buy that dip if it comes. Cross spreaders continue to hold interest near-term; profit-taking likely to result in a squeeze on the further strength. Technical trade overnight as traders decide near-term action with little to go on but the charts.

BOE rate cut next month increasingly likely but that is likely completely factored in at this point. Traders note liquidity is only moderate and still on the lower side. Aggressive traders can look to buy the next dip.

GBP/USD Daily
Resistance 3: 1.5300/10
Resistance 2: 1.5280
Resistance 1: 1.5250
Latest New York: 1.4975
Support 1: 1.4900
Support 2: 1.4820/30
Support 3: 1.4700

Data due Thursday: All times EASTERN (-5 GMT)
4:30am GBP Retail Sales m/m
4:30am GBP Prelim M4 Money Supply m/m
4:30am GBP Public Sector Net Borrowing

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