Closed in NY Friday at $1.5864, just off traded lows of $1.5853. A lot of traders were looking for a close Friday below $1.5910 (200-dma, today at $1./5909) to open potential for a challenge on Nov lows at $1.5829. With this in mind cable came under pressure in pre Tokyo trade, but rate was only able to extend its corrective pullback lows to $1.5838 before willing buyers emerged to cushion the dip and take rate back to settle between $1.5862/74 through the Asian afternoon, trading around $1.5871 into Europe. Sterling’s recent negative undertone remains in place with focus this week turning to Friday’s release of Q4 GDP data with several commentators noting the chance that the UK could slip into a triple dip recession. Apart from the recent release of poor UK data, the market looking for clarification on the UK government’s relationship with the EU going forward (Friday’s Cameron speech on this subject was postponed due to the terrorist situation in Algeria). Cable support seen at $1.5838 to $1.5829, stops placed below $1.5820. Resistance $1.5880/85. Euro-sterling made a show above stg0.84 (stg0.8407) overnight, but offers encountered here provided cable with some buoyancy through Asia.
EasyForexNews Research Team