Cable closed in NY at $1.5957, off pullback lows of $1.5945 which were seen after rate had pulled back from extended highs of $1.6002. Rate marked lows at $1.5947 into early Asian trade before stepping its way to an eventual high of $1.5964. Rate drifted off highs but remained buoyed above $1.5950 ahead of the European open. Strong sell interest greeted cable into Europe, taking the rate to early lows of $1./5928 before it was able to edge its way back above $1.5950. Strong demand for EUR/GBP then emerged from a Swiss name which took the cross up to challenge resistance at stg0.8370, before US name buys spiked it to stg0.8392. This move pressed cable to extended lows of $1.5914. Cable recovered to $1.5938 ahead of UK GDP data release, the downward revision taking cable down to $1.5904 as the cross extended highs to stg0.8394. Despite the negative news and the sterling negative order execution the pound was able to recoup part of its losses in late morning trade, cable extending to $1.5947 while the cross held back around stg0.8380.
EasyForexNews Research Team