The pair closed in NY Thursday at $1.6200, just off recovery highs of $1.6213 after rate had recovered off pressured lows of $1.6138, the low seen as euro-sterling pressured up to take out barrier interest at stg0.8550. Cable’s recovery through the NY afternoon was seen as the cross corrected away from its session high of stg0.85555, closing the day below its 200-dma at stg0.8534 (today at stg0.85353) around stg0.8520. Cable came under mild dollar demand pressure into early Asia (Gotobi day dollar-yen demand seen into the Tokyo fix), dipping to $1.6180 before meeting decent demand. Rate recovered to $1.6200 where it met resistance before getting shoved through the figure, then $1.6225, on suggested Asian sovereign reserve rebalancing following anotherround of dollar buy intervention. Triggered stops through $1.6225 lifted the rate on to $1.6248, holding shy of the stronger resistance area between $1.6250/60 ($1.6258 Oct23 high; $1.6260 Oct1 high). Corrective pullback found support around $1.6230 ahead of the European open. Germany Ifo the early focus (0800GMT) but followed closely by UK Q3 GDP (0830GMT) with market expectations for an upward revision. Cable demand $1.6230, $1.6200, offers $1.6250/60.
