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 the overnight Asian session was contained within a tight range of $1.5666/93, while EUR/GBP held within stg0.78265-0.7835. Few traders note that GBP has now faltered three times in recent sessions ahead of its 200-dma, today coming in at $1.5745. Some will turn their attention toward 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 was seen allowing GBP to track EUR/USD recovery, post Draghi comments on euro support, with talk suggesting European sovereign euro recycling for the move back from stg0.7860. Very light UK data calendar today, with US GDP release the standout data. Headline reactions remain a key driver of direction. GBP offers seen at $1.5725/35, stronger into $1.5750 with stops above. Support $1.5666 to $1.5662 (Asia low/23.6% $1.5459-1.5725). Resistance $1.5725/35.
EasyForexNews Research Team