Closed in NY at $1.5807, having recovered off pullback lows of $1.5795. Rate slipped lower into early Asian trade, with reported stops sub $1.5790 seen as an early attraction. Rate dipped to an extended low of $1.5786 (off recent highs at $1.5884 Feb1) before picking up fresh demand. Rate recovered through the balance of the session, stepping its way to an eventual high of $1.5825, with early Europe extending this move to $1.5832. Markets seen fairly subdued, experiencing usual per US employment report thin trading conditions. Resistance seen at the NY high of $1.5842, with sell interest suggested extending to $1.5859/61 (Thus Europe high and 76.4% $1.5884/1.5786 respectively). A break above this later area to open a move back to $1.5884, with stronger offers noted into $1.5890, more toward $1.5900. Support $1.5785/75 ahead of $1.5750 ($1.5749 76.4% $1.5707/1.5884). EUR/GBP was contained within a range of stg0.83015-0.83205 through Asia, favouring the bottom side into early Europe. UK CIPS services PMI in focus at 0928GMT, seen as one of the determinates for size of QE extension.
EasyForexNews Research Team