Follow-on selling drops rate into next support at the 1.4700 area last week but rate starts firmer. Traders note solid two-way action with stops building above the market likely in the 1.5050 area and higher. Some stops over 1.5000 flushed overnight. Sellers hold control above 1.5000 today as rate backs off highs but lows hold.

OK to buy if flat on a dip. Traders also note the same names seen in size on the bid the past few days has been on the offer overnight. 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: 1.5200/10
Resistance 2: 1.5120/30
Resistance 1: 1.5050
Latest New York: 1.4949
Support 1: 1.4700/10
Support 2: 1.4650
Support 3: 1.4550

Data due Tuesday: All times EASTERN (-5 GMT)
4:30am GBP BBA Mortgage Approvals
4:30am GBP Prelim Business Investment q/q
4:45am GBP MPC Treasury Committee Hearings

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