GBP closed in NY at $1.5950, having recovered off session lows of $1.5860. Rate touched an early session low of $1.5949 before extending the recovery, breaking above key resistance at $1.5964 to take it on to an eventual session high of $1.5990 ahead of the European open. Rate retained a strong tone in early European dealing with corrective pullbacks remaining very shallow. Reports of heavy sales being soaked up provided the early clue as rate began to edge higher, the move above $1.6002 picking up momentum as large stops through $1.6025 were targeted and triggered. Rate spiked to a high of $1.6034 before momentum faded. Rate drifted lower with before heavy sales knocked rate under $1.6000, the move triggering stops to take it back to $1.5968. Dip met decent demand which eventually took rate back above $1.60 ahead of NY. Traders have focus on tonight’s close noting the 200 week m/a comes in at $1.6014 and seen key. End month flows remain a major driver. EUR/GBP M&A linked sales also seen buoying the pound.
EasyForexNews Research Team