Opened early Europe at $1.5682, stg0.7838, GBP closed in NY at $1.5685, off extended recovery highs of $1.5724 having met stiff resistance from offers placed into the Jul 19 highs at $1.5735. Trade through Asia was contained within a tight $1.5666/93 range, while EUR/GBP held within stg0.78265-0.7835. A few traders note that cable has now faltered three times in recent sessions ahead of its 200-dma, today coming in at $1.5745. Attention also on the 200-week moving average at $1.5728 at tonight’s close, a break either way having seen decent follow throughs in the past. EUR/GBP rejection away from stg0.7860 Thursday allowed cable to track EUR/USD recovery, with talk suggesting European sovereign euro recycling for easing away from highs. GBP tracked EUR/USD moves into early Europe, edging up before meeting resistance at $1.5700. Rate drifted off to $1.5672 before getting driven higher on reports of LHS EUR/GBP interest at 1000GMT. The cross dropped to stg0.7800, taking cable back to retest $1.5725 ahead of the NY open.
EasyForexNews Research Team