Closed in NY at $1.5920 after rate had corrected back from its earlier European highs of $1.5972 to $1.5916 in NY. Rate edged higher into early Asian dealing with good demand seen for GBP/JPY from Japanese accounts which pushed cable to highs of $1.5945. Like EUR/USD, once this demand dried up so rate drifted lower, touching a base at $1.5917 before settling around $1.5925 into the European open. Support remains around the $1.5916-17 (NY-Asia lows, 50% $1.5863/1.5972) with a break below to open a deeper move toward $1.5905/00 with demand seen from here and extending down to $1.5890 (76.4%). Stops noted below this latter level, a break to expose Tuesday’s low at $1.5863. Resistance seen at $1.5945, with further interest seen dotted up to $1.5960, a break to open a move back toward $1.5972. Further offers then seen into $1.5985 ahead of stronger interest building in the area between $1.6000/20. Focus today will begin with BOE Tucker speech (not been quoted for a while) 0800GMT, followed by UK employment data at 0830GMT along with key BOE Minutes (9-0 no change rates, 7-2 QE).
EasyForexNews Research Team