Opened in Asia at $1.5800 after a strong pull up from lows of $1.5655 as NY opened. The pair launched a strong recovery as risk appetite built on stronger US jobless claims and talk that the ECB might swap it’s existing Greek bonds estimated at E40bln for new ones under the same terms, in an effort to assist the push through of the Greek rescue plan on Monday. Cable rallied throughout the N. American session peaking at $1.5817 before easing to $1.5800 into the close. Asian markets have been relatively calm with the pair trading a tight
$1.5795-1.5818 range this morning. Stops are said to lie above in the $1.5825/30 area ahead of offers at $1.5840/50. EUR/GBP has traded a stg0.8302-15 range, with support seen towards stg0.8280 and resistance at stg0.8320/25. Focus this morning will be on the UK retails sales data at 0930GMT and any developments ahead of Monday’s critical EU meeting.
EasyForexNews Research Team