The pair closed in NY Wednesday at its intraday highs of $1.5408 after sterling was given a general boost following release of stronger than forecast UK services PMI, completing a set of positive PMI releases. Rate nudged up to extended recovery highs of $1.5414 in early Asian trade before getting eased back to $1.5384, in line with a euro-dollar downside squeeze, before picking up fresh demand that lifted the rate to session highs of $1.5416 before drifting off to hold around $1.5400 into early Europe. Euro-sterling consolidated Wednesday’s move below stg0.8500 in a range of stg0.8497/0.8507 leaving cable to take direction from euro-dollar moves. Halifax house price data provides the early domestic interest at 0700GMT but will be overshadowed initially by the BOE MPC rate decision 1100GMT (though no change expected at Governor King’s last meeting). Cable resistance seen between $1.5420/30, ahead of $1.5445/50 and $1.5466 (76.4% retrace of $1.5607-$1.5008). Support $1.5380 ahead of $1.5360 and stronger interest into $1.5340 (100-dma).
