Updating time : 19/12/2007 00:15 GMT

GBP/USD - 2.0164 ...Sterling traded below Monday's high at 2.0230 y'day (Tuesday's high was 2.0226) n price subsequently declined to 2.0110 after the release of soft U.K. inflation data before rebounding on short-covering, however, decent offers at 2.0195/00 in New York pushed the pair lower again to 2.0112 on the back of slightly better-than-expected U.S. housing data b4 recovering.

Although further sideways trading inside nr term established range of 2.0101- 2.0230 wud be seen, as long as upper level holds, another decline is still envisaged but a breach of said sup needed to confirm major fall fm 2.1162 has resumed n yield further weakness to 2.0023 (equality proj. of 2.1162-2.0352 fm 2.0833), however, reckon 1.9930 (equality proj. of 2.0833-2.0180 measured fm 2.0583) shud contain downside.

Therefore, selling cable on recovery is recommended with stop initially abv 2.0230 res as break wud risk stronger retrace. to 2.0285 (38% r of 2.0583-2.0101), however, renewed selling shud emerge below 2.0330/42 area (prev. sup n 50% r of 2.0583-2.0101) n bring selloff later...