Closed in NY around $1.5897, after correcting back from a late session rally high of $1.5915. Rate edged higher from its Asian opening low, the move up aided by EUR/USD EUR/JPY led rally, with rumoured, then confirmed, strong China traded data providing the added lift to take rate through that NY high and on to a high of $1.5931. Release of stronger than expected RICS house price data was also noted in the mix of sterling positives in the move up. Rate retained a firm tone through the balance of the Asian session, with pullbacks meeting support in the $1.5920/15 area. One trader draws attention to the Tenkan line, which comes through at $1.5932, with 50% of $1.6063/1.5805 coming in at $1.5934, adding that a break here would add to upside recovery potential. Next resistance seen at $1.5950 ahead of $1.5964 (61.8%) and stronger interest around $1.6000 ($1.6002 76.4%). Support noted at $1.5900/1.5895, stops below $1.5890. A break here to open a deeper move toward $1.5885/80 ahead of $1.5850 and $1.5835/30. a light data calendar for early this week, with UK trade and PPI set for Thursday and Friday.
EasyForexNews Research Team