Closed in NY at $1.5727, off intraday highs of $1.5745 with sterling getting a boost during Thursday’s session from the release of stronger than expected UK retail sales data, with risk appetite seen in NY providing additional buoyancy. Rate edged to an early high in Asia of $1.5739 before turning lower, the break under NY pullback lows at $1.5727 extending the move before meeting support into $1.5700 (76.4% $1.5689-1.5745). Rate currently trades around $1.5705. A break of $1.5700 to expose the $1.5689 level, the pullback base seen ahead of the Thursday’s posted high, with a break here to then open a deeper move toward $1.5662 (76.4% of the bigger recovery from $1.5637 to $1.5745). Resistance remains at $1.5745/50, a break of the 100-dma at $1.5753 to open a move toward $1.5775/85. Light domestic calendar today with attention on euro action to determine direction. US Michigan confidence the stand out data this afternoon at 1355GMT ahead of the weekend. Euro-sterling has extended its recovery off recent lows at stg0.7813 to stg0.7866 in Asia, after breaking above the NY high at stg0.7860.
EasyForexNews Research Team