Closed in NY at $1.5760, having eased away from traded highs of $1.5798, failing to take out the reported barrier at the figure. Cable buoyancy was seen driven by month end flows as well as a strong corrective pullback in the euro, which saw EUR/GBP break under recent lows in the stg0.8311/10 area to stg0.8280. GBP consolidated the recovery between $1.5754/67 in early Asian trade before slipping lower late on to $1.5733 ahead of the European open. Move lower seen instigated by EUR/USD slippage, back toward Tuesday’s pullback lows, with rate holding heavy into early Europe, with weight slightly added on back of weaker than expected Nationwide house price data. Rate has extended lows to $1.5727 into early Europe. EUR/GBP opened Asia just below stg0.8300, marked highs at stg0.8304 before turning lower again and is seen resting on support at stg0.8280 into Europe (low stg0.8282). GBP demand seen to $1.5720, a break to allow for a deeper move toward $1.5700. Resistance remains toward the barrier at $1.5800, with stops $1.5810/15. UK mfg PMI due at 0928GMT.
EasyForexNews Research Team