Closed in NY at $1.5957 after trade in NY was contained within a range of $1.5930/75, after rate had recovered from an earlier European dip low of $1.5895. Rate again closed above its 200-dma, yesterday at $1.5899-today $1.5897, and seen keeping the recent underlying buoyant tone in place though upside progress seem thwarted by EUR/USD
corrective easing seen after the LTRO allotment. Cable edged to an early high of $1.5967 in Asia before drifting off, in line with EUR/USD, to $1.5941, with the rate extending this move into early Europe to $1.5921 as further slippage in EUR/USD, following release of weak German retail sales data, weighed. Support in cable seen at $1.5920 with interest extending down to $1.5914 (76.4% $1.5895/1.5975). A break here to expose Thursday’s low at $1.5895, though demand seen back in place from $1.5900 and extending down to $1.5880. Resistance seen at $1.5975, a break to open a move back toward recent highs at $1.5993 with offers noted from here and extending into the reported barrier at $1.6000. UK construction PMI due for release at 0930GMT to morning focus.
EasyForexNews Research Team