Closed in NY at $1.5820, off pullback lows of $1.5810 after rate had posted extended highs during Monday’s Asian session of $1.5904. Rate posted an early Asian low of $1.5815 before edging higher through the session to $1.5848, as rate tracked EUR/USD recovery, though move was slightly tempered as EUR/GBP edged up from stg0.8464 to stg0.8488. GBP opens Europe around $1.5845, the cross around stg0.8478. Only UK data for today comes at 1100GMT, the CBI releasing sales data. More attention will be placed on Wednesday’s ECB LTRO allocation, as well as Bernanke’s testimony. GBP demand seen at $1.5810/00 ahead of $1.5790, with stops placed below this latter level. A break here to meet minor demand at $1.5780 ahead of $1.5765/60. Resistance seen at $1.5850/60, a break to open a move toward $1.5880/85 ahead of $1.5900/05 (key resistance $1.5903 200-dma), stops above $1.5910. Stronger offers noted between $1.5940/60, with barrier interest getting a mention at $1.6000.
EasyForexNews Research Team