Closed in NY at $1.6144, the rate having recovered from a pullback low of $1.6127 after extending recent highs earlier in the day to $1.6164. Rate consolidated its recent recovery, trade through the Asian session contained within a range of $1.6136/51, with early sales into Europe retesting the overnight low in tandem with EUR/USD. EUR/GBP recovery off Tuesday lows of stg0.81435 saw rate push up to stg0.8187 in NY which provided a counter to cable’s upside progress, the cross overnight contained by stg0.8172/78 with early Europe so far respecting these tight parameters. Expect some spec paring back of recently opened long positions as attention turns to the release of Q1 GDP data at 0830GMT. Many commentators have suggested that this initial reading can often be way off line but there will be a reaction either way, a minus number placing the UK into recession. Bids seen placed at the now marked lows of $1.6133 (76.4% $1.6127-51) with interest placed into Tuesday’s pullback low of $1.6127. Stronger demand noted between $1.6120/00. Offers $1.6150/55, stronger $1.6164/70.
EasyForexNews Research Team