GBP/USD closed in NY on Friday at $1.5318, having seen lows in NY of $1.5234 as rate was pulled lower by EUR/USD slippage, with triggered stops on the break below $1.5270 adding further weight. Rate was marked lower, alongside EUR/USD, into early Asia, the rate opening trade at $1.5288 before getting pressed to session lows of $1.5273. Strong demand set back in place ahead of $1.5270 cushioned the move and allowed the rate to recover through the session to $1.5330, closing any gap caused by the disparity in the NY close/Asia open. Middle east buying of GBP into early Europe provided some early buoyancy for cable, supporting it above $1.5300, but short covering in the EUR took EUR/GBP outside of its Asian range of stg0.8255/73 to stg0.8283, in turn pressing cable down to $1.5280. Rejection from above stg0.8280, as EUR/USD failed to extend its recovery above $1.2700, allowed cable to bounce back to $1.5328, but cross support into stg0.8260 saw cable track EUR/USD lower, easing back under $1.5300 ahead of the afternoon session.
EasyForexNews Research Team