Closed in NY at $1.6100 after recovering off a pullback low of $1.6089 (having seen an intraday high of $1.6131 after benefiting from outflows of Chf), with sterling retaining an underlying buoyant tone. A pullback to $1.6094 was quickly greeted by willing buyers The positive opening in Chinese stocks provided risk with an added boost into Asian trade with initial demand lifting cable to an early high of
$1.6109. A pullback to $1.6094 was greeted by willing buyers that took rate back above $1.6100 and on to $1.6119 ($1.6121 76.4% $1.6131-1.6090) where it has met sell interest placed toward $1.6120. A break here to expose Tuesday’s high at $1.6131 with offers noted from this level and extending to the $1.6150/60 area, with stops above. Cable demand seen back at $1.6090/80 ahead of $1.6050. Focus this morning will be on release of UK services PMI data (0928GMT) though highlight of the day will be Chancellor Osbornes’s Autumn Statement at 1230GMT, though downward revisions to GDP won’t come as a major surprise. Euro-sterling firm, has extended recovery off stg0.8100 to stg0.8144 in Asia.
EasyForexNews Research Team