Closed in NY at $1.5618, the rate having pulled back from sessionhighs of $1.5684 after recovering off earlier European lows of $1.5579. Rate continued this corrective easing into early Asia, meeting supportat $1.5603 (76.4% $1.5579-1.5684) before recovering to $1.5622 thensettling between $1.5610/20 into the Asian afternoon. Fresh sellpressure emerged into early Europe with rate currently trading around$1.5608. EUR/GBP was contained within a range of stg0.7930/40through overnight trade. Focus today on the BOE Inflation Report withmost expecting a downside revision to growth and inflation forecasts.Despite this view cable has been able to remain above $1.5600, while EUR/GBP holds off recent highs at stg0.7963. Direction to be givenby BOE King’s tone. Bids remain in place into $1.5600, a break to open aretest of Tuesday’s lows at $1.5579 ahead of $1.5565/45. Stops notedbelow $1.5540. Resistance $1.5625 ahead of $1.5650, $1.5665 and$1.5680/85. EUR/GBP support stg0.7925/20 ahead of stg0.7900.Resistance stg0.7940/45, stg0.7960/70.
EasyForexNews Research Team