GBP/USD closed in NY at $1.5460, just off session highs of $1.5470. Rate initially marked lows into Asian trading at $1.5450 before picking up fresh demand, the recovery through the overnight session basically tracking EUR/USD, as the cross held within a range of stg0.8252/67. GBP edged to an overnight high of $1.5485, extending the move to $1.5486 into early Europe before turning lower as it tracked EUR/USD early corrective pullback, though EUR/GBP trading down to stg0.8249 provided some braking. Euro recovery allowed cable to spike back up to $1.5500, where it met decent resistance, allowing in turn the cross to recover to a high of stg0.8281 late morning, the extended move pressing GBP back to $1.5455, closing the morning back around $1.5470. Strong sell interest seen stacked up between $1.5500/25, as well as ongoing corporate demand for the cross seen keeping a cap in place on cable. Support remains in place at $1.5450 ahead of $1.5425/20. Traders also suggest shorting a cross move to stg0.8320/3.
EasyForexNews Research Team