Rate closed in NY Friday at $1.6013, able to finish the week back above $1.6000 after a brief dip to $1.5988, with early trade into Asia Monday seeing rate ease off to $1.6005 as it tracked euro-dollar moves. Rate recovered, upside momentum boosted as euro-dollar spiked up to $1.3048 and stops were triggered above $1.6035, the move taking cable on to $1.6048 ($1.6045 76.4% $1.6063-1.5988) before meeting decent resistance from offers placed toward $1.6050. Rate drifted off to $1.6027 ($1.6026 50% $1.6005-48) where it has found some support ahead of the European open. A break of $1.6020 to open a deeper pullback toward $1.6005/00 ahead of $1.5988. Resistance remains into $1.6050, a break to expose Friday’s high at $1.6063, with offers noted to $1.6065. Above here and rate can extend toward $1.6080 ahead of $1.6100 (barrier?). Risk remains in favour, aided by an easing in Eurozone periphery yields as well as weekend China PMI data coming in on the stronger side. UK mfg PMI due this morning at 0928GMT, with BOE FLS quarterly lending data at 0930GMT. Chancellor Osborne Autumn Statement Wednesday key this week.
EasyForexNews Research Team