Closed in NY at $1.6215 after extending its recovery off intraday lows of $1.6164 to $1.6219 ahead of the close. Rate touched an early low at $1.6213 before tracking euro-dollar higher, the rate pushing to an initial high of $1.6229 before momentum faded and move reversed on Japanese sales of euro-yen. Cable retested the early low before picking up stronger demand which lifted rate to back to challenge $1.6230 resistance. The break above this level opened a move up to $1.6261, with rate holding firm into early Europe. Strong resistance seen in the area between $1.6265/75 (recent highs between $1.6268/73), with weak talk in recent sessions suggesting barrier interest at $1.6275. A break here then exposes confirmed barrier interest at $1.6300, with 2012 highs (Apr30) at $1.6302 sitting close behind. Stops noted on break of $1.6310, which if triggered to open a move toward $1.6330/35 ahead of $1.6350. A break and close above $1.6302 would also add to the underlying positive tone going forward. Support seen at $1.6230/20 ahead of $1.6200. UK public borrowing data due at 0830GMT.
EasyForexNews Research Team