Closed in NY at $1.5828, having extended its recovery off earlier session lows of $1.5730 to $1.5841. Rate drifted off to $1.5805 in early Asian dealing before recovering back, getting a kick up to $1.5832 into the RBA rate decision as market initially acted positively to the unchanged rate decision as risk got a boost. However, the boost to the AUD overtook and weighed back on sterling via the cross, with GBP dropping back to $1.5797 as it tracked EUR/USD sharper pullback. GBP was provided some buoyancy in the move as EUR/GBP dropped back from stg0.8300 to stg0.8285. GBP settled back between $1.5800/15 through the balance of the session and into Europe before coming under further pressure which extended lows to $1.5793. Rate retains a heavy tone at writing. Bids seen placed between $1.5785/75, with stops below $1.5770, a break to open a deeper move toward $1.5750 ($1.5756 76.4% $1.5730/1.5841). Resistance remains at $1.5832 ahead of $1.5841 with further interest seen into $1.5850 ($1.5848 76.4% $1.5884/1.5730). A break here to expose recent high at $1.5884.
EasyForexNews Research Team