Closed in NY at $1.5783, after recovering off pullback lows of $1.5773 seen after rate had pulled back from extended highs of $1.5805 (this move taking out barrier interest at $1.5800). Rate saw a high of $1.5792 into early Asia before drifting lower, the rate tracking euro-dollar moves as euro-sterling pivoted stg0.7900. Cable eased to a session low of $1.5767 before picking up fresh demand which allowed rate to recoup session losses to retest the early highs ahead of the European open. Rate currently trades around $1.5788. Offers remain in place between $1.5795/05 with stops positioned on a break of $1.5810. Support seen at $1.5767, with stronger demand noted between $1.5750/40 with stops below. A light data calendar will keep attention turned toward headlines for direction, with FOMC Minutes to provide the later interest after the European close (1800GMT). Euro-sterling was driven to high of stg0.7909, on the general euro short covering drive, with rally so far holding off from triggering reported stops above stg0.7910. A break here to open a move toward stg0.7920 then stg0.7945/50. Support stg0.7880.
EasyForexNews Research Team