The pair closed in NY Friday at $1.5267 having extended its recovery highs to $1.5283 (50% $1.5752-1.4814) after extending its recovery off Thursday lows of $1.5158 on the back of the release of stronger than forecast UK retail sales data. Rate initially dipped to $1.5258 in early Asian dealing before picking up fresh demand, seen driven by the sharp pullback in dollar-yen (as long positions rushed to take profit following the ruling party’s win in the upper house election, result expected and positioned for), which took rate through $1.5283 and on to $1.5297. Rate eased off highs before meeting support at $1.5277 (50% $1.5258-97), edged back to $1.5294 before it settled around $1.5280 ahead of the European open. Moves through the Asian session tracked euro-dollar as the cross was confined to a range of stg0.85985-0.8612, trading around stg0.8606 into Europe. Cable offers remain at $1.5295/05 with stops $1.5310. Further offers then noted at $1.5340/50. Support remains between $1.5280/70 ahead of the overnight low at $1.5258, with bids into $1.5250. Euro-sterling demand remains at stg0.8590, with stops below, a break to expose next support at stg0.8575/65. Resistance stg0.8625/30.
