Rate falls hard as cross-spreaders sell GBP across the board. Overnight economic news seen as neutral; some rumor of UK bank downgrades adding pressure. Sell-signal from toolbox validated suggesting a test of the next major support area around the 1.3850 to 1.3780 area.

Signs of the bottom after holding the 1.4500 handle last week negated near-term with offers likely back at the sell zone around 1.4450 area now. Cross-spreaders continue to sell GBP across the board. Volumes continue light on this break.

Spillover from EURO likely. Look for two-way action into this bottom. A short-covering rally is increasingly likely now; looking for signs of late sellers.

GBP USD Daily
-Resistance 3: 1.4600
-Resistance 2: 1.4520/30
-Resistance 1: 1.4450
-Latest New York: 1.3915
-Support 1: 1.3850
-Support 2: 1.3800/10
-Support 3: 1.3760

Data due Wednesday: All times EASTERN (-5 GMT)
-4:30am GBP MPC Meeting Minutes
-4:30am GBP Average Earnings Index 3m/y
-4:30am GBP Prelim M4 Money Supply m/m
-4:30am GBP Public Sector Net Borrowing
-4:30am 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