GBP closed in NY at $1.5901, having pierced above its key 200-dma at $1.5903 (today $1.5902), though failed to close above. Rate dipped back to $1.5898 into early Asia before heading higher, the move triggering stops above $1.5910 before meeting resistance ahead of Feb 8 highs at $1.5929. Rate held above $1.5920 before making the break above $1.5930, the move triggering further stops to extend move to $1.5938. Rate settled between $1.5925/35 before extending pullback to $1.5920 ahead of the European open. Fresh selling emerged in Europe into the extended move and took rate down to $1.5915. Rate bounced back to $1.5935 before turning lower again, marking lows at $1.5911 before trekking higher again. Rate extended highs to $1.5960, after a barrier at $1.5950 was taken out with release of strong UK housing data providing the added nudge higher. Middle eastern sales off the highs eased rate back to $1.5925/20 but underlying tone remained sterling positive, allowing EUR/GBP to extend its pullback from stg0.8490 to stg0.84245.
EasyForexNews Research Team