Closed in NY at $1.6156, as rate pulled back from recovery highs of $1.6168. The corrective pullback continued through Asia as rate, initially marked highs at $1.6159, eased to a low of $1.6129 as it tracked EUR/USD slippage, with EUR/GBP diverting some of the pressure as it eased from early highs of stg0.8050 to stg0.8035. GBP settled between $1.6130/40 into Europe, getting a lift toward $1.6150 in early trade, before once again settling back around $1.6135. EUR/GBP trades around stg0.8042. Little on the domestic front today, Queen’s speech at 1000GMT setting out the government’s programme though nothing surprising expected. BOE begins its two day rate policy meeting today, announcement 1100GMT Thursday. Cable Support now seen between recent pullback lows of $1.6129/24 ahead of stronger support between $1.6115/00. Stops reside below. Resistance $1.6200 (recent recovery high $1.6199 off $1.6115), with interim interest seen into $1.6170 (61.8% $1.6199-24) ahead of $1.6181 (76.4%). EUR/GBP bids stg0.8035/25 (stg0.8025 barrier). Resistance stg0.8050, stg0.8070/80.
EasyForexNews Research Team