Cable was unable to make a clean break of $1.5900 in European trade yesterday, printing highs of $1.5899 following release of better than expected mfg PMI data. The pair consolidated gains and closed around $1.5895. Rate opened in Asia at $1.5885 and ground lower before dip demand recovered and settled in a tight range. Euro-dollar’s stop hunt lifted cable to $1.5899 and a test of yesterday’s spike high, the rate stalled before a fresh wave of demand attempted a clean break of $1.5900. Once again the move was capped at $1.5899 and eased to $1.5885. Strong resistance remains into $1.5900, a break opens technicals at $1.5908/13 (61.8% retracement of May/Jun decline, 23 Aug high). Strong support in Europe yesterday cushioned euro-sterling at stg0.7905 following the mfg PMI data, the pair later bounced to settle around stg0.7925. The cross tracked sharp euro-dollar demand in Asia and lifted to stg0.7942 where the rate consolidated ahead of Europe. Strong offers reported at stg0.7950, through here opens stg0.7956 (31 Aug high).
EasyForexNews Research Team