Rate extends losses to make a test of lows; then rallies to test resistance. Support at 1.4720/30 area holds after stops cleared; rate is holding 1.4740 to close. More upside now due within 24 hours if dips continue to be bought above the 1.4720 area.

Close back near the 1.4850 area will confirm willing buyers on the dips. Aggressive traders can look to ADD to open longs anytime looking for a push through and a close back above 1.5000. Some spillover from EURO likely. Good bids reported but supply seen from semi-official names overnight.

Traders note solid two-way action. Sellers hold control above 1.5100 area so far; OK to buy if flat on a dip. Profit-taking likely to result in a squeeze on the further strength. Technical trade overnight again. Traders note liquidity is only moderate and still on the lower side.

GBP/USD Daily
Resistance 3: 1.5200
Resistance 2: 1.5100/10
Resistance 1: 1.5050
Latest New York: 1.4750
Support 1: 1.4550
Support 2: 1.4460/70
Support 3: 1.4420

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

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