Rate two-way overnight, remains near unchanged to open New York; two-way action continues. Some selling pressure seen but rate is likely to press for highs on more bad news.

Resistance is cleared the other side of the 1.8500 handle so expect a pullback to be bought hard. Aggressive traders can buy the next dip but also look to lighten longs into the 1.8700 area if it comes. Equities pullback vote of "no confidence" so far on the bailout. Possible sovereign interest on the rally as semi-officials seen on dips in both EURO and GBP recently. Some stops triggered along with active buying.

In my view, the GBP has weathered the storm fairly well and it suggests no serious down move near-term. Traders note stops mixed with offers above the market also. Major support has held for two weeks now, any weakness likely to be bought hard. Profit-taking bids continue as well. Close above the 1.8500 area for the week likely argues for another leg higher to end the month.

GBP/USD Daily

Resistance 3:  1.8700
Resistance 2:  1.8680
Resistance 1:  1.8620/30
Latest New York: 1.8512
Support 1:  1.8480
Support 2:  1.8420/30
Support 3:  1.8380

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

8:40am GBP MPC Member Barker Speaks

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