Closed in NY Friday at $1.6115 after recovering from a pullback low of $1.6081 to a late recovery high of $1.6124. Rate retested that recovery high into early Asian dealing before rate turned lower, settling between $1.6070/85 through the main part of the overnight session, trading around $1.6085 into early Europe. Euro-sterling was contained within a tight stg0.8033/43 range leaving cable to take direction from euro-dollar moves. Bids in cable remain into $1.6070, a break to allow for a deeper move toward $1.6060/50, with stops noted below. Further demand seen at $1.6030/20. Resistance seen between $1.6085/95, a break above the figure to allow for a move back toward $1.6120/25 ahead of stronger area between $1.6140/50. UK consumer credit, M4 and mortgage data due at 0930GMT with focus on effects of the BOE’s FLS action. UK PMI data due into the end of the week Thursday-Friday and seen as key for next direction.
EasyForexNews Research Team