Rate two-way, holds gains and has inside range day overnight; stops seen above weekly highs around the 1.4250 area. Tests support on pullback and holds for now. Lows likely remain secure.

Reversal off weekly lows a positive technical but the volume needs to come up and I think the shorts have yet to bail as a group. Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term but stops are building above 1.4400 and the 1.5000 handle is a big psychological number.

Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Short squeeze back on the board I think. Next upside target is 1.4400 area

GBP/USD Daily

• Resistance 3: 1.4350
• Resistance 2: 1.4320
• Resistance 1: 1.4250
• Latest New York: 1.4050
• Support 1: 1.3860
• Support 2: 1.3780
• Support 3: 1.3720

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

• 5:30am GBP Claimant Count Change
• 5:30am GBP MPC Meeting Minutes
• 5:30am GBP Average Earnings Index 3m/y
• 5:30am GBP Unemployment 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