Closed in NY at $1.6054, having recovered from a pullback low of $1.6009 in early NY (off earlier European highs of $1.6078) to $1.6072. Rate picked up an early bid tone into Asia on the back of GBP/JPY demand, the rate edging to an overnight high of $1.6062 before drifting off to $1.6039 as the cross demand faded. Rate recovered through the Asian afternoon, moving through the earlier high into early Europe, extending to $1.6068. Focus today on UK retail sales 0830GMT before main attention will turn toward the IMF/World Bank meeting which begins today and continues into the weekend. Tech traders will be watching to see if the rate can close above its 200-week moving average at $1.5958 at tonight’s close, which should boost expectations for further gains. Offers seen placed between $1.6075/85, a break to expose $1.6095/1.6100. The $1.62100 level is said to hold barrier interest which has been linked to Asian sovereign selling into rallies. Support remains in place back at $1.6010/00. EUR/GBP was contained by stg0.8182/0.81945 in Asia, off the week’s lows at stg0.8162.
EasyForexNews Research Team