Closed in NY at $1.5730, off NY recovery highs of $1.5740, and initially edged to $1.5737 into early Asian trade as rate tracked the early mark up in EUR/USD. Rate reversed off highs into the main Asian session, the rate easing through the balance of the session to a session low of $1.5702. Early Europe added weight, as it did on EUR/USD, taking GBP back below $1.5700 to $1.5677 ($1.5679 61.8% $1.5642/1.5740). Friday’s strong rally in EUR/USD outperformed cable, which in turn saw the cross move above stg0.840 to stg0.84095. Trade in Asia saw rate pare back these gains, easing off from an early high of stg0.8407 to stg0.8385, currently trading around stg0.8387. Stronger support seen at $1.5665 (76.4%), a break to allow for a deeper move into $1.5650/40 with stops placed below. Resistance now seen into $1.5700 ahead of $1.5720/25 and $1.5740/50. For the cross, support seen into stg0.8380, a break to allow for a deeper move toward stg0.8340. Resistance stg0.8410 ahead of stg0.8420/25. No major data due in the UK, main focus on Eurozone developments.
EasyForexNews Research Team