Closed in NY Friday at $1.5836, having been pressured to an extended recovery high of $1.5862 on a general dollar sell off following release of weaker than expected US data. Rate slipped back to mark session lows at $1.5829 before recovering, in a lightly traded session, to a high of $1.5850. Rate opens Europe pressing up against that high, extending the topside to $1.5851 at writing. Little on the data calendar to influence the rate with traders looking ahead into this week to Tuesday’s inflation data, followed by the BOE Minutes and Chancellor Osborne’s Budget on Wednesday. Resistance remains around the $1.5860/65 area, with focus on the 200-dma at $1.5861 especially on a close basis. A close above expected to provide the technical community with a bullish signal. A break of $1.5865 to open a move toward $1.5880/85 ahead of $1.5895/00. Support seen back at $1.5830/20 ahead of $1.5800. EUR/GBP was contained in Asia between stg0.83115/0.83215 with early sell pressure in Europe squeezing it back to stg0.83095. Support stg0.8305/00 ahead of Friday’s lows at stg0.8293. Offers stg0.8325/30.
EasyForexNews Research Team