Closed in NY at $1.5505 after recovering from a NY session low of $1.5489, easing off recovery highs of $1.5520 into the close. Rate
extended this pullback into early Asia, marking lows at $1.5491 before recovering in tandem with EUR/USD (EUR/GBP confined to a tight stg0.7776-88 range) to a high of $1.5517 ahead of the European open. Rate was holding around $1.5510 into Europe, the cross around stg0.7784. Focus today turns to domestic UK 2Q GDP data at 0830GMT with most forecasting -0.2% for the headline Q/Q number. The extended Jubilee holiday expected to have impacted growth data with some suggesting a worse outcome, though admit that extraction and utilities output can prove volatile and have a counter effect. GBP offers seen placed around $1.5520, with $1.5537 the 76.4% retrace of the move down from $1.5552 to $1.5489. Above here and rate expected to meet stronger resistance between $1.5545/55 ahead of $1.5580/85. Support remains in place between $1.5490/85 with talk of stronger bid interest placed below $1.5480 ($1.5474 76.4% $1.5393-1.5735) with stops noted through $1.5470.
EasyForexNews Research Team